Multiple Choice
If aggregate expenditure was less than GDP,which of the following would happen?
A) Inventories would shrink and GDP would drop in future periods.
B) Inventories would grow and GDP would drop in future periods.
C) Inventories would shrink and GDP would increase in future periods.
D) Inventories would grow and GDP would increase in future periods.
E) Inventories would not change and GDP would drop in future periods.
Correct Answer:

Verified
Correct Answer:
Verified
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