Multiple Choice
If aggregate planned expenditures exceed real GDP, then
A) inventories increase above their planned levels and businesses decrease their production.
B) inventories decrease below their planned levels and businesses increase their production.
C) there is no equilibrium level of real GDP.
D) inventories decrease below their planned levels and businesses decrease their production.
E) unplanned inventory changes equal zero.
Correct Answer:
Verified
Correct Answer:
Verified
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