Multiple Choice
If the level of real GDP is $14 trillion while aggregate planned expenditure is $15 trillion, then
A) real GDP increases and planned expenditure decreases reaching equilibrium in the middle.
B) inventories fall more than planned, leading firms to increase production.
C) inventories rise more than planned, leading firms to increase production.
D) inventories rise more than planned, leading firms to cut production.
E) aggregate planned expenditure decreases to reach the equilibrium of $14 trillion.
Correct Answer:

Verified
Correct Answer:
Verified
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