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    Exam 6: An Introduction to Macroeconomics
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    Suppose That Inventories Are Falling
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Suppose That Inventories Are Falling

Question 196

Question 196

Multiple Choice

Suppose that inventories are falling. We can expect that, in the future,


A) unemployment will likely increase.
B) unemployment will likely decrease.
C) unemployment could increase or decrease, as its direction cannot be predicted based on inventories.
D) real GDP will likely decrease.

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