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    Exam 15: A Simple Model of the Macro Economy
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    In the Aggregate Demand-Output Model, If an Economy Operates Below
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In the Aggregate Demand-Output Model, If an Economy Operates Below

Question 17

Question 17

Multiple Choice

In the aggregate demand-output model, if an economy operates below equilibrium GDP, there will be:


A) unplanned inventory depletion.
B) unplanned inventory accumulated.
C) a decrease in GDP.
D) a decrease in employment.

Correct Answer:

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