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In the Aggregate Expenditure (AE) Model, When Real GDP Exceeds

Question 74

Multiple Choice

In the aggregate expenditure (AE) model, when real GDP exceeds aggregate planned expenditure, actual inventories ________ planned inventories and real GDP ________.


A) exceed; increases
B) exceed; does not change
C) exceed; decreases
D) are less than; increases
E) are less than; decreases

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