If Planned Aggregate Expenditure Is Less Than Total Production

question 238

Multiple Choice

If planned aggregate expenditure is less than total production

• A)actual inventories will equal planned inventories.
• B)firms will experience an unplanned decrease in inventories.
• C)GDP will decrease.
• D)the economy is in equilibrium.

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Definitions:

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing tool for employees and the self-employed in Canada.

Compounded Annually

Interest on an investment that is calculated once a year and added to the principal sum of the investment.

Compounded Monthly

Compounded Monthly means applying interest to both initial principal and the accumulated interest from previous periods on a monthly basis.

Lost Wages

The income an individual is unable to earn due to their inability to work, often resulting from an injury or illness.