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Within the Framework of the Aggregate Expenditures Model, Which of the Following

Question 2

Multiple Choice

Within the framework of the aggregate expenditures model, which of the following is true ?


A) When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise.
B) Equilibrium will always occur at the full-employment level of output.
C) A nation's imports will decline as the nation's disposable income increases.
D) When spending on goods and services exceeds the level of aggregate output, inventories will fall.

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