Question

From April 2019 to July 2019​, business inventories decreased by $ 2034 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?

Answer 1

Answer:

Was higher.

Explanation:

We have to use a little bit of logci to answer this question, we just have to keep in mind that Aggregate expenditure is the cost of all of the products and services offered in a nation, so ig the business inventories, which are basically the inventories that the stores have, if this go down it means that previously produced goods and services are being sold, this increases the aggregate expenditure, and Gross domestic product is semi-stable, so aggreagate expenditure will be higher than GDP.