Suppose the equilibrium level of expenditure is $13 trillion. If real GDP is $12 trillion, then inventories are ________ their target levels and real GDP will ________.

Name: Suppose the equilibrium level of expenditure is $13 trillion. If real GDP is $12 trillion, then inventories are ________ their target levels and real GDP will ________.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

When real GDP is below the equilibrium level of expenditure, inventories are below their target levels, leading to an increase in production and real GDP.

Suppose the Equilibrium Level of Expenditure Is $13 Trillion