Multiple Choice
Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are
A) increasing, and real Gross Domestic Product (GDP) will expand.
B) increasing, and real Gross Domestic Product (GDP) will contract.
C) decreasing, and real Gross Domestic Product (GDP) will expand.
D) decreasing, and real Gross Domestic Product (GDP) will contract.
Correct Answer:
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