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.

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Definitions:

Income Taxes Paid

The total amount of money a company pays in taxes to various tax authorities based on its taxable income.

Investing Activities

Activities concerning the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Non-Current Assets

Long-term assets that are not expected to be converted into cash within one year of the balance sheet date, including property, plant, equipment, and intangible assets.

Gain on Sale

The financial profit realized when the selling price of an asset exceeds its book value or costs at the time of sale.