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In the Short-Run Macro Model,if GDP Is $5 Trillion and Aggregate

Question 78

Multiple Choice

In the short-run macro model,if GDP is $5 trillion and aggregate expenditure is $4 trillion,


A) GDP will rise because inventories will rise
B) GDP will fall because inventories will fall
C) GDP will remain the same because this is an equilibrium
D) investment will decrease
E) the government will have to increase taxes

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