If Output Is Less Than Planned Aggregate Expenditure, There Will

question 207

Multiple Choice

If output is less than planned aggregate expenditure, there will be

• A) an unplanned increase in inventories.
• B) an unplanned decrease in inventories.
• C) no change in inventories.
• D) a planned increase in inventories.

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Definitions:

$1 Par Value

The nominal or face value assigned to a share of stock, with no necessary relation to the market value, set at $1 per share.

Earnings Per Share

A financial metric that divides net income by the number of outstanding shares, indicating the profit available to each share of stock.

Treasury Stock

Stocks initially released and later repurchased by the company that issued them, leading to a reduction in the available shares on the public market.

Purchases

The total amount spent on buying goods and services for either resale or use in production in a specific accounting period.