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.