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    Exam 11: Expenditure Multipliers: the Keynesian Model
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    When Real GDP Exceeds Aggregate Planned Expenditure
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When Real GDP Exceeds Aggregate Planned Expenditure

Question 156

Question 156

Multiple Choice

When real GDP exceeds aggregate planned expenditure,


A) the circular flow will increase.
B) GDP will decrease.
C) actual inventories decrease below their target.
D) a higher level of equilibrium income will prevail.

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