If Firms Sell What They Expected to Sell,which of the Following

question 36

Multiple Choice

If firms sell what they expected to sell,which of the following will be true?

• A)Aggregate expenditure will be greater than GDP.
• B)There is no unplanned change in inventories.
• C)Inventories will rise,and GDP and employment will fall.
• D)Aggregate expenditure will be less than GDP.

---

Definitions:

Borrow

To receive something, especially money, from a person or financial institution with the agreement to return it, typically with interest, at a future date.

Gross Domestic Product (GDP)

The nation’s expenditure on all the goods and services produced in the country during the year at market prices; represented by GDP.

Economics

The social science that studies the production, distribution, and consumption of goods and services, and how individuals, businesses, and governments make choices about allocating resources.

Investment

The act of allocating resources, usually money, into assets with the expectation of generating income or profit.