In a Small Economy in 2013,aggregate Expenditure Was $850 Million

question 218

Multiple Choice

In a small economy in 2013,aggregate expenditure was $850 million while GDP that year was $800 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?

• A)Aggregate expenditure is always less than GDP in developed countries.
• B)Firm investment in inventories was less than anticipated in 2013.
• C)Firm investment in inventories was greater than anticipated in 2013.
• D)Aggregate expenditure is always less than GDP in developing countries.

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Definitions:

Cilia

Microscopic, hair-like structures on the surface of certain cells that move in a wave-like manner, facilitating movement or the transport of fluids and particles.

Vesicle

A small, fluid-filled sac or cyst within the body or a cell, used to transport materials within the cytoplasm.

Membrane Enclosed Sac

A structure within a cell, bounded by lipids, that contains fluid or smaller organelles, involved in transport, storage, and processing.

9+2 Arrangement

A specific structure found in the microtubules of eukaryotic cilia and flagella, consisting of nine pairs of microtubules surrounding two central microtubules.