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If There Is an Unplanned Increase in Inventories, Aggregate Planned

Question 127

Multiple Choice

If there is an unplanned increase in inventories, aggregate planned expenditure is


A) greater than real GDP and firms increase production.
B) greater than real GDP and firms decrease production.
C) less than real GDP and firms increase production.
D) less than real GDP and firms decrease production.
E) less than real GDP and firms decrease investment.

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