Figure 10.1 -Refer to Figure 10.1..If the level of real GDP is initially Y₂,spending is ________ production and there is an unexpected ________ in inventories. A) greater than; increase B) greater than; decrease C) less than; increase D) less than; decrease

Question

Quizplus · Accepted Answer

If real GDP is initially at Y₂ and spending is less than production, it results in an increase in inventories because goods are being produced but not sold.

Figure 10.1 -Refer to Figure 10.1..If the Level of Real GDP Is