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In the Aggregate Expenditures Model, If Aggregate Expenditures (AE) Equal

Question 92

Multiple Choice

In the aggregate expenditures model, if aggregate expenditures (AE) equal $4 trillion and GDP equals $3 trillion, then:


A) inventory depletion equals − $1 trillion.
B) inventory accumulation equals $1 trillion.
C) investment equals − $1 trillion.
D) investment equals $1 trillion.

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