In a Small Economy in 2011,aggregate Expenditure Was $800 Million

question 153

Multiple Choice

In a small economy in 2011,aggregate expenditure was $800 million while GDP that year was $850 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 2011.
• C) Firm investment in inventories was greater than anticipated in 2011.
• D) Aggregate expenditure is always less than GDP in developing countries.

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Definitions:

Speed of Light

The speed at which light waves propagate through different mediums; in a vacuum, it is approximately 299,792 kilometers per second.

Wavelength

A measure of the distance between two identical points (such as peaks) in consecutive cycles of a wave.

P Orbital

A type of atomic orbital that has a dumbbell shape and can hold up to two electrons, with orientations along the x, y, and z axes.

Electrons

Subatomic particles with a negative electric charge, orbiting the nucleus of an atom, involved in chemical bonds and electricity.