Answered

Get the information you need with the help of IDNLearn.com's expert community. Our platform provides accurate, detailed responses to help you navigate any topic with ease.

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

Sagot :

Baraqidn

Given the situation described in the question, this implies that the firm's "aggregate expenditure that year equal to the GDP that year."

This is evident in the fact that the expected or estimated inventories sum equals the actual inventories sum.

Note business or firm's inventories are included when measuring the GDP.

This is because the unsold inventories of firms which is resulted from the firms producing more than they sell, increases GDP. While when firms sell Inventories more than they produce, it leads to a reduction in GDP.

Hence, in this case, it is concluded that the correct answer to the question is "aggregate expenditure that year equal to the GDP that year."

Learn more here: https://brainly.com/question/17043435

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.