Suppose That GDP Was $200 Billion in Year 1 and That

question 111

Multiple Choice

Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is

• A) $180 billion.
• B) $190 billion.
• C) $200 billion.
• D) $210 billion.

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