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:

Psychological Laboratory

A controlled environment designed for conducting research, experiments, and studies in psychology.

Wilhelm Wundt

Considered the father of experimental psychology, he established the first psychology laboratory at the University of Leipzig in 1879.

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychotherapist.

Wilhelm Wundt

Considered the father of experimental psychology, he established the first psychology laboratory at the University of Leipzig in 1879, marking the beginning of psychology as a separate science.