What Would Happen in an Economy If Total Planned Production

question 127

Multiple Choice

What would happen in an economy if total planned production exceeded total planned real expenditures?

• A) Inventories would be depleted, and firms would tend to lower prices.
• B) Inventories would accumulate, and firms would tend to lower prices.
• C) Inventories would be depleted, and firms would tend to raise prices.
• D) Inventories would accumulate, and firms would tend to raise prices.

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