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Economics for Today 9th Edition by Irvin Tucker
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Which of the following most completely describes the workings of the aggregate expenditures model?
A) If aggregate expenditures are less than aggregate output, then there is unplanned inventory accumulation, and real GDP will decrease.
B) If aggregate expenditures are greater than aggregate output, then there is unplanned inventory depletion, and real GDP will increase.
C) Aggregate output generates an equal amount of aggregate spending.
D) Both answers a. and b. above are correct.
A) If aggregate expenditures are less than aggregate output, then there is unplanned inventory accumulation, and real GDP will decrease.
B) If aggregate expenditures are greater than aggregate output, then there is unplanned inventory depletion, and real GDP will increase.
C) Aggregate output generates an equal amount of aggregate spending.
D) Both answers a. and b. above are correct.
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The function for aggregate expenditure (...
Economics for Today 9th Edition by Irvin Tucker
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