Multiple Choice
In the income-expenditure framework, suppose planned aggregate expenditures are greater than real GDP.How will inventories be affected?
A) Inventories will stay the same.
B) Inventories will first increase, and then decrease.
C) Inventories will increase.
D) Inventories will decrease.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: What does the aggregate expenditure line represent?
Q5: How will a decrease in the price
Q6: Suppose the full employment level of income
Q7: Which of the following would result from
Q8: Suppose the price level increases.Other things constant,
Q10: How would an economist use an aggregate
Q11: How will a decrease in autonomous investment
Q12: Suppose the marginal propensity to consume in
Q13: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the
Q14: The many job losses that occurred soon