Firms in a Small Economy Planned That Inventories Would Grow

question 122

Multiple Choice

Firms in a small economy planned that inventories would grow over the past year by $500,000.Over that year,inventories did grow by exactly $500,000.This implies that

• A)aggregate expenditure that year was equal to GDP that year.
• B)there was an unplanned increase in inventories that year.
• C)there was an unplanned decrease in inventories that year.
• D)aggregate expenditure that year was greater than GDP that year.