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    Macroeconomics Study Set 57
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    Exam 11: Aggregateexpenditures
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    When PAE Is Less Than Y, Inventories Should
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When PAE Is Less Than Y, Inventories Should

Question 54

Question 54

Multiple Choice

When PAE is less than Y, inventories should:


A) increase.
B) decrease.
C) remain the same.
D) decrease slightly before sharply increasing.

Correct Answer:

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