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If Planned Aggregate Expenditure Is Above Potential GDP and Planned

Question 5

Multiple Choice

If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP, then


A) actual inventory investment will be less than planned inventory investment.
B) actual inventory investment will be greater than planned inventory investment.
C) the economy is in an expansion.
D) the economy is at full employment.
E) the economy is in a recession.

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