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When Aggregate Expenditure Is Less Than GDP, Which of the Following

Question 88

Multiple Choice

When aggregate expenditure is less than GDP, which of the following is true?


A) There was an unplanned increase in inventories.
B) Firms spent more on capital goods than they anticipated.
C) Households bought more new homes than they anticipated.
D) unemployment is likely to rise.
E) All of the above must be true when aggregate expenditure is less than GDP.

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