When the AE line lies above the 45° line,
A) there are unplanned increases in inventories.
B) there are unplanned decreases in inventories.
C) real GDP exceeds aggregate planned expenditure.
D) aggregate planned expenditure is less than real GDP.
E) the price level is rising.
Correct Answer:
Verified
Q51: If the level of real GDP is
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Q58: When aggregate planned expenditure exceeds real GDP,
A)
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Q82: If firms' inventories exceed their planned inventories,firms
A)increase
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Q91: When real GDP exceeds aggregate planned expenditure,
A)real
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