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    Macroeconomics Australia
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    Exam 12: Aggregate Expenditure Multiplier
  5. Question
    According to the Aggregate Expenditure Model,when Faced with Unwanted Inventory,firms
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According to the Aggregate Expenditure Model,when Faced with Unwanted Inventory,firms

Question 180

Question 180

Multiple Choice

According to the aggregate expenditure model,when faced with unwanted inventory,firms


A) decrease production.
B) increase production.
C) immediately cut prices.
D) do nothing and wait for equilibrium to be restored.
E) are forced to go out of business.

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