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Assume a Model with No Government or Foreign Sector

Question 23

Multiple Choice

Assume a model with no government or foreign sector.If actual output is $13.1 trillion while aggregate demand is $13.2 trillion, we know that


A) the magnitude of unintended inventory adjustments is - $100 billion
B) the magnitude of unintended inventory adjustments is + $100 billion
C) the magnitude of unintended inventory adjustments is + $10 billion
D) the actual income level is above its equilibrium
E) there currently is an excess supply of goods and services

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