When aggregate expenditure is more than GDP, which of the following is true?
A) Firms spent less on capital goods than they planned.
B) Households bought fewer new homes than they planned.
C) There was an unplanned decrease in inventories.
D) All of the above must be true when aggregate expenditure is more than GDP.
C
You might also like to view...
Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________
A) horizontal; price taker B) downward sloping; price maker C) vertical; price taker D) downward sloping; price taker
In an unregulated competitive market, the presence of marginal external benefit from a good or service results in less than the efficient quantity being produced
Indicate whether the statement is true or false