Aggregate Output Will Increase If There Is A(n)

question 186

Multiple Choice

Aggregate output will increase if there is a(n)

• A) increase in saving.
• B) unplanned rise in inventories.
• C) unplanned fall in inventories.
• D) decrease in consumption.

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Definitions:

Credit Sales

Sales for which payment is not received at the time of the transaction but is expected to be received at a later date.

Finished Goods Inventory

Products that are completed and ready for sale but have not yet been sold to customers.

Required Production

The amount of product that must be produced in a specified period to meet customer demand and inventory policy.

Cash Collections

The process of gathering and accounting for all cash received by a business during a specific period of time.