If There Is an Unplanned Increase in Inventories, Aggregate Planned

question 143

Multiple Choice

If there is an unplanned increase in inventories, aggregate planned expenditure is

• A)greater than real GDP and firms decrease production.
• B)less than real GDP and firms increase production.
• C)less than real GDP and firms decrease production.
• D)greater than real GDP and firms increase production.
• E)less than real GDP and firms decrease investment.

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