Which of the Following Describes the Relationship Between the Change

question 127

Multiple Choice

Which of the following describes the relationship between the change in inventories and aggregate expenditure?

• A) Aggregate expenditure equals the change in inventories minus GDP.
• B) The change in inventories equals GDP divided by aggregate expenditures.
• C) Aggregate expenditures equals GDP divided by the change in inventories.
• D) Aggregate expenditures equals GDP minus the change in inventories.
• E) The change in inventories equals GDP multiplied by aggregate expenditure.

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Definitions:

External Control

Influence or regulation by external factors or entities over an organization's or individual's actions and decisions.

Internal Control

Mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Normative Control

A management approach that seeks to regulate employees' behavior and decisions through the establishment of organizational norms and values.