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If Aggregate Expenditures Are Less Than Real GDP, Then

Question 96

Multiple Choice

If aggregate expenditures are less than real GDP, then:


A) both inventories and real GDP will decline.
B) inventories will decline but real GDP will increase.
C) inventories will increase and real GDP will decline.
D) both inventories and real GDP will increase.
E) inventories will increase but real GDP will remain unchanged.

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