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    Exam 11: Expenditure Multipliers
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    When Real GDP Exceeds Aggregate Planned Expenditure
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When Real GDP Exceeds Aggregate Planned Expenditure

Question 116

Question 116

Multiple Choice

When real GDP exceeds aggregate planned expenditure


A) actual inventories decrease below their target.
B) the circular flow will increase.
C) GDP will decrease.
D) a higher level of equilibrium income will prevail.

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