Suppose the equilibrium level of expenditure is $600. If real GDP is $500, then inventories are
Their target levels and real GDP will .
A) decreasing below; increase
B) decreasing below; decrease
C) increasing above; decrease
D) increasing above; increase
Correct Answer:
Verified
Q203: At equilibrium expenditure
A) consumers' expenditures on goods
Q204: In the aggregate expenditure model, when real
Q205: Equilibrium expenditure is defined as the level
Q206: Q207: All of the following statements about equilibrium Q209: Equilibrium expenditure occurs where the aggregate expenditure Q210: When the economy is in equilibrium, Q211: When investment exceeds planned investment, aggregate planned
A) planned
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