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When Current Real Production of Goods and Services (Real GDP)is

Question 112

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When current real production of goods and services (real GDP) is greater than planned aggregate expenditure


A) inventories of goods and services are rising
B) firms will increase production to replenish depleted inventories
C) businesses and households will increase planned aggregate spending because it is in their interest to promote employment
D) the price level will automatically rise to restore equilibrium in the economy
E) leakages must equal planned injections

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