If Aggregate Planned Expenditures Are Less Than Real GDP,then

question 87

Multiple Choice

If aggregate planned expenditures are less than real GDP,then

• A)unplanned inventory changes equal zero.
• B)there is no equilibrium level of real GDP.
• C)inventories increase above their planned levels and businesses increase their production.
• D)inventories increase above their planned levels and businesses decrease their production.
• E)inventories decrease below their planned levels and businesses increase their production.

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Definitions:

Subject-Verb Agreement

The grammatical rule that the verb in a sentence must agree in number with the subject (singular or plural).

Trees

Perennial plants with an elongated stem, or trunk, supporting branches and leaves in most species.

Raincoat

A waterproof jacket designed to keep the body dry from rain.

Members

Individuals belonging to a group, organization, or a specific category of people.