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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    According to the Aggregate Expenditure Model, When Faced with Unwanted
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According to the Aggregate Expenditure Model, When Faced with Unwanted

Question 151

Question 151

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.

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