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What Would Happen in an Economy If Total Planned Production

Question 127

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What would happen in an economy if total planned production exceeded total planned real expenditures?


A) Inventories would be depleted, and firms would tend to lower prices.
B) Inventories would accumulate, and firms would tend to lower prices.
C) Inventories would be depleted, and firms would tend to raise prices.
D) Inventories would accumulate, and firms would tend to raise prices.

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