In a Small Economy in 2016,aggregate Expenditure Was $800 Million

question 171

Multiple Choice

In a small economy in 2016,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 2016.
• C)Firm investment in inventories was greater than anticipated in 2016.
• D)Aggregate expenditure is always less than GDP in developing countries.

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Definitions:

Wilson Administration

Refers to the presidency of Woodrow Wilson in the United States from 1913 to 1921, noted for its domestic reforms and leadership during World War I.

American Expeditionary Force

The formation of U.S. military personnel sent to Europe during World War I to fight alongside the Allies against the Central Powers.

Western Front

A major theater of battle during World War I, stretching across Belgium and France, characterized by trench warfare and significant casualties.

French Officials

Personnel or authorities that govern, administer, or represent France at various levels of organization, from local communities to international relations.