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Suppose the Economy Operates at Potential Output, If the Amount

Question 151

Multiple Choice

Suppose the economy operates at potential output, if the amount that businesses plan to invest is greater than the amount that consumers plan to save, then


A) there will be an inflationary gap.
B) there will be a recessionary gap.
C) equilibrium GDP will be less than aggregate investment.
D) the economy will experience inventory accumulation.

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