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Macroeconomics 10th Edition by William McEachern
Edition 10ISBN: 978-1133188131Macroeconomics 10th Edition by William McEachern
Edition 10ISBN: 978-1133188131 Exercise 8
WHEN OUTPUT AND SPENDING DIFFER What role do inventories play in determining real GDP demanded? In answering this question, suppose initially that firms are either producing more than people plan to spend, or producing less than people plan to spend.
Explanation
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Change in inventory and the level of rea...
Macroeconomics 10th Edition by William McEachern
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