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Suppose That in 2013,firms Discover That Their Inventories Are Falling

Question 179

Multiple Choice

Suppose that in 2013,firms discover that their inventories are falling below their planned levels.Which of the following statements is correct?


A) The level of aggregate savings must equal the level of desired investment.
B) Even though firms are trying, they are unable to maximize profits.
C) Aggregate demand is less than aggregate supply.
D) Real GDP is less than equilibrium expenditure.

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