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    Macroeconomics Australia Study Set 1
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    Exam 12: Aggregate Expenditure Multiplier
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    When Aggregate Planned Expenditure Exceeds Real GDP, There Are Unplanned
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When Aggregate Planned Expenditure Exceeds Real GDP, There Are Unplanned

Question 65

Question 65

Multiple Choice

When aggregate planned expenditure exceeds real GDP, there are unplanned ________ in inventories, and firms ________ production, so that real GDP ________.


A) decreases; increase; increases
B) decreases; decrease; increases
C) decreases; decrease; decreases
D) increases; increase; increases
E) increases; decrease; decreases

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