Following three years of negative growth,restaurant sales in the United States were expected to increase 3.6 percent in 2011.If the increase in restaurant sales increases aggregate expenditure,
A) unplanned investment will decrease.
B) planned investment will decrease.
C) planned aggregate expenditure will be less than real GDP.
D) real GDP will be less than nominal GDP.

Question

Quizplus · Accepted Answer

An increase in restaurant sales leading to higher aggregate expenditure suggests that businesses will experience less unplanned inventory accumulation, thus decreasing unplanned investment.

Following Three Years of Negative Growth,restaurant Sales in the United