A Country Reports That Unplanned Inventories Increased During 2012

question 59

Multiple Choice

A country reports that unplanned inventories increased during 2012.The increase in unplanned inventories leads to

• A) the government decreasing production, which decreases GDP.
• B) consumers increasing their consumption expenditure, which increases GDP.
• C) firms decreasing production, which decreases GDP.
• D) firms increasing production, which increases GDP.
• E) actual aggregate expenditure being different than real GDP.

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