Multiple Choice
According to the aggregate expenditure model, when faced with unwanted inventory firms
A) are forced to go out of business.
B) decrease production.
C) immediately cut prices.
D) increase production.
E) do nothing and wait for equilibrium to be restored.
Correct Answer:

Verified
Correct Answer:
Verified
Q146: Aggregate planned expenditure decreases if<br>A) government expenditure
Q147: The consumption function is the relationship between
Q149: <span class="ql-formula" data-value="\begin{array} { c c }
Q152: If aggregate planned expenditures exceed real GDP,
Q153: During 2010, a country reported that its
Q154: Which components of aggregate expenditure change as
Q156: When aggregate planned expenditure exceeds real GDP,
Q235: What is unplanned investment? How does it
Q368: "If aggregate planned expenditure exceeds real GDP,
Q371: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The above table