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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    Real GDP Is $5 Trillion and Aggregate Planned Expenditure Is
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Real GDP Is $5 Trillion and Aggregate Planned Expenditure Is

Question 243

Question 243

Multiple Choice

Real GDP is $5 trillion and aggregate planned expenditure is $7 trillion.As a result, unplanned inventory change is ________ and real GDP ________.


A) positive; decreases
B) positive; increases
C) negative; increases
D) negative; decreases
E) negative; does not change

Correct Answer:

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