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Suppose That There Is No Government and No International Trade

Question 112

Multiple Choice

Suppose that there is no government and no international trade. When C + I is less than the level of real GDP


A) unplanned inventories decrease, and real GDP expands.
B) unplanned inventories increase, and real GDP contracts.
C) unplanned inventories equal zero, and there is no change in the level of real GDP.
D) real planned investment spending equals real planned saving.

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