If an Unplanned Increase in Business Inventories Occurs at Some

question 84

Multiple Choice

If an unplanned increase in business inventories occurs at some level of GDP, then GDP:

• A)entails a rate of aggregate expenditures in excess of the rate of aggregate production.
• B)may be either above or below the equilibrium output.
• C)is too low for equilibrium.
• D)will decrease.