Which of the following is INCORRECT?
A) Firms experience unplanned decreases in inventories as expansions begin.
B) Expansions usually begin with an increase in autonomous spending.
C) Firms increase production in response to unplanned decreases in inventories.
D) The multiplier dampens the increase in income that occurs during expansions and brings the economy to a new equilibrium GDP.
Correct Answer:
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Q322: If the marginal propensity to import increases,
Q323: Q324: You observe that unplanned inventories are increasing. Q325: Q327: A decrease in autonomous expenditure shifts the Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
