Question

Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis. Can we tell from this information whether aggregate expenditure was higher or lower than GDP during this​ quarter? If​ not, what other information do we​ need? A. Aggregate expenditure was equal to GDP in this quarter. B. There is not enough information to determine the relationship between aggregate expenditure and GDP. C. Aggregate expenditure was less than GDP in this quarter. D. Aggregate expenditure was greater than GDP in this quarter.

Answer 1

Full Question:

From July 2015 July 2015 to October 2015​, business inventories decreased by $3 billion. *Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis.

Can we tell from this information whether aggregate expenditure was higher or lower than GDP during this​ quarter? If​ not, what other information do we​ need?A. Aggregate expenditure was equal to GDP in this quarter. B. There is not enough information to determine the relationship between aggregate expenditure and GDP. C. Aggregate expenditure was less than GDP in this quarter. D. Aggregate expenditure was greater than GDP in this quarter.

Aggregate expenditure was greater than GDP in this quarter.

Explanation:

The values of all the goods and services in a country at a certain period of time determines the GDP of that country. It is the monetary values of these finished goods and services. GDP helps any country in the determination of the growth rate of that country  economically. The monetary values associated with the income, expenditures and the  production helps in the GDP calculation.

The summation of all the expenditures of the economy  by the factors during a certain time period is the aggregate expenditure. Aggregate expenditures can be calculated by the summation of  C, I ,G,NX. From the give data we can conclude that Aggregate expenditure was greater than GDP in this quarter.