If aggregate expenditures exceed GDP in a private closed economy:
A. leakages will exceed injections.
B. planned investment will exceed saving.
C. unplanned investment in inventories will occur.
D. saving will exceed planned investment.
Answer: B. planned investment will exceed saving.
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How can a proprietorship or partnership raise funds for expansion?
A) take on a partner or more partners B) reinvest profit back into the business C) borrow from someone or an institution willing to lend the funds D) Any of these would generate funds for expansion.
The real exchange rate generally has ______ relationship with aggregate expenditure.
A. a negative B. a positive C. no D. a constant
Wage elasticity of labor supply is a term referring to the
a. percentage change in wages demanded divided by the percentage change in wages supplied. b. percentage change in wages supplied divided by the percentage change in wages demanded. c. percentage change in wages divided by the percentage change in hours worked. d. percentage change in hours worked divided by the percentage change in wages.
Which of the following would be considered an ongoing expense?
A. Raw materials B. Advertising C. Employee salaries D. All of these could be considered ongoing expenses.