In the aggregate expenditures model, if aggregate expenditures (AE)equals $7 trillion and GDP equals $8 trillion, then inventory accumulation equals $1 trillion.

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Quizplus · Accepted Answer

If aggregate expenditures (AE) are less than GDP, the difference represents unsold goods, leading to inventory accumulation. Here, $8 trillion (GDP) - $7 trillion (AE) = $1 trillion in inventory accumulation.

In the Aggregate Expenditures Model, If Aggregate Expenditures (AE)equals $7