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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
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    As the Economy Turns the Corner into a Recession, the Level
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As the Economy Turns the Corner into a Recession, the Level

Question 244

Question 244

Multiple Choice

As the economy turns the corner into a recession, the level of unplanned inventories ________ and firms ________ production.


A) increases; begin to decrease
B) increases; begin to increase
C) decreases; begin to decrease
D) decreases; begin to increase
E) increases; do not change

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