Multiple Choice
Suppose that at a particular level of real GDP, the unintended change in inventories is zero.How will this affect the level of real GDP?
A) The level of real GDP will be less than the equilibrium level of real GDP demanded.
B) The level of real GDP will be greater than the equilibrium level of real GDP demanded.
C) The level of real GDP will be the equilibrium level of real GDP demanded.
D) The level of real GDP will first be greater, and then less, than the equilibrium level of real GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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