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If Aggregate Planned Expenditure Is Greater Than Real GDP

Question 256

Multiple Choice

If aggregate planned expenditure is greater than real GDP,


A) an unplanned decrease in inventories leads to an increase in production.
B) an unplanned increase in inventories leads to a decrease in production.
C) a planned decrease in inventories leads to an decrease in production.
D) a planned increase in inventories leads to an increase in production.
E) an unplanned decrease in inventories leads to an increase in the price level.

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