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Suppose That, in 2012, Firms Discover That Their Inventories Are

Question 111

Multiple Choice

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.

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