Suppose that, in 2012, firms discover that their inventories are falling below their planned levels. Which of the following statements is correct?
A) Aggregate demand is less than aggregate supply.
B) The level of aggregate savings must equal the level of desired investment.
C) Even though firms are trying, they are unable to maximise profits.
D) Real GDP is less than equilibrium expenditure.
Correct Answer:
Verified
Q106: Q107: The vertical distance between the 45- degree Q108: Q109: Suppose disposable income increases from $5 billion Q110: Actual aggregate expenditure is Q112: Because the short-run aggregate expenditure model assumes Q113: If the multiplier is 4 and there Q115: At equilibrium expenditure, Q116: If the MPC increases from 0.75 to Q304: 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![]()
![]()
A)always equal to real
A)aggregate planned expenditure equals real![]()