If Aggregate Planned Expenditures Equal Real GDP, Then

question 247

Multiple Choice

If aggregate planned expenditures equal real GDP, then

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

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