If Planned Aggregate Expenditure Is Greater Than Total Production

question 253

Multiple Choice

If planned aggregate expenditure is greater than total production

• A)actual inventories will equal planned inventories.
• B)firms will experience an unplanned increase in inventories.
• C)GDP will increase.
• D)the economy is in equilibrium.

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Definitions:

Float Management

The practice of managing the time difference between the writing of a check and its clearing at the bank, aiming to optimize the use of available funds.

Small Firm

A business with a limited number of employees and revenue, often defined within specific legal frameworks based on the industry.

Sources of Float

Sources of float include the time difference between when a payment is initiated and when it is actually cleared and becomes available in a company's bank account, affecting the management of cash flow.

Collection Float

The time period between when a check is deposited and when funds are made available.