In the aggregate expenditure model, when real GDP is greater than aggregate planned expenditure,
A) inventories are not being changed.
B) this cannot happen, because the two variables are always equal.
C) unplanned inventories are being accumulated.
D) inventories are being depleted.
Correct Answer:
Verified
Q199: Inventories are part of
A) consumption expenditure.
B) investment.
C)
Q200: If planned expenditures equal $2000 when GDP
Q201: If aggregate planned expenditures are less than
Q202: If aggregate planned expenditures are less than
Q203: At equilibrium expenditure
A) consumers' expenditures on goods
Q205: Equilibrium expenditure is defined as the level
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