Whenever Total Planned Expenditures Differ from Real GDP

question 364

Multiple Choice

Whenever total planned expenditures differ from real GDP

• A) unplanned inventories will remain unchanged.
• B) unplanned inventories will change.
• C) government spending will adjust.
• D) tax revenues will move the economy back to equilibrium.

Identify prefixes that denote quantity, size, or degree.

Recognize prefixes indicating position or location.

Understand prefixes that describe conditions or qualities.

Distinguish between prefixes that have similar meanings.

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Definitions:

Days' Sales

A financial ratio that measures the average time it takes for a company to convert its inventory into sales.

Industry Average

A benchmark or standard performance metric across a sector or industry, useful for comparison and strategic planning.

LIFO

Last In, First Out is a method for valuing inventory that records the most recently manufactured goods as the first ones sold.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, not continuously, through physical counts.