In a Small Economy in 2013,aggregate Expenditure Was $800 Million

question 80

Multiple Choice

In a small economy in 2013,aggregate expenditure was $800 million while GDP that year was $850 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:

Independent Variable

the variable that is manipulated or changed in an experiment to explore its effects on the dependent variable.

Control Group

A collection of individuals in a study who do not undergo the experimental intervention, serving as a comparison point to evaluate the performance of participants who do.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Control Group

In experimental research, a group of subjects not exposed to the treatment or intervention being tested, used as a baseline to compare the effects of the treatment on the experimental group.