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If Aggregate Planned Expenditure Exceeds Real GDP Then

Question 37

Multiple Choice

If aggregate planned expenditure exceeds real GDP then


A) inventories increase, and the short- run aggregate supply curve shifts rightward.
B) inventories increase, and as real GDP increases, a movement up along the AE curve occurs.
C) inventories decrease, and as real GDP increases, a movement up along the AE curve occurs.
D) inventories decrease, and the AE curve shifts downward.
E) inventories increase, and the AE curve shifts upward.

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