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If Aggregate Planned Expenditures Are Less Than the Level of Real

Question 263

Multiple Choice

If aggregate planned expenditures are less than the level of real GDP,


A) real GDP and income will either decrease or remain unchanged, depending on the MPC.
B) real GDP and income remain unchanged.
C) real GDP and income will increase.
D) inventories will increase above their target level and real GDP will decrease.

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