Multiple Choice
Which of the following is INCORRECT?
A) Expansions usually begin with an increase in autonomous spending.
B) Firms experience unplanned decreases in inventories as expansions begin.
C) Firms increase production in response to unplanned decreases in inventories.
D) The multiplier dampens the increase in income that occurs during expansions and brings the economy to a new equilibrium GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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