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A Country Reports That Unplanned Inventories Increased During 2014

Question 8

Multiple Choice

A country reports that unplanned inventories increased during 2014. The increase in unplanned inventories leads to


A) consumers increasing their consumption expenditure, which increases GDP.
B) firms decreasing production, which decreases GDP.
C) firms increasing production, which increases GDP.
D) actual aggregate expenditure being different than real GDP.
E) the government decreasing production, which decreases GDP.

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