If Aggregate Planned Expenditure Equals GDP, Then

question 3

Multiple Choice

If aggregate planned expenditure equals GDP, then

• A) the change in firms' inventories must be negative.
• B) the change in firms' inventories must be positive.
• C) actual aggregate expenditure might be greater than, equal to or less than real GDP.
• D) there must be no change in firms' inventories.
• E) the change in firms' inventories must be equal to the planned change.

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Definitions:

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