In the Aggregate Expenditures Model, If Real GDP Equals $700

question 42

Multiple Choice

In the aggregate expenditures model, if real GDP equals $700 billion and aggregate expenditures equal $400 billion,

• A) consumption plus investment equals $300 billion.
• B) planned investment equals $300 billion.
• C) investment plus saving equals $300 billion.
• D) unplanned inventory accumulation equals $300 billion.

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