If aggregate planned expenditure is greater than real GDP, A) ...

[washai]

If aggregate planned expenditure is greater than real GDP,
 
  A) a planned decrease in inventories leads to a decrease in production.
  B) a planned increase in inventories leads to an increase in production.
  C) an unplanned decrease in inventories leads to an increase in production.
  D) an unplanned decrease in inventories leads to an increase in the price level.
  E) an unplanned increase in inventories leads to a decrease in production.

Question 2

Demand-pull inflation starts with a shift of the
 
  A) potential GDP line leftward.
  B) AD curve leftward.
  C) AS curve leftward.
  D) AS curve rightward.
  E) AD curve rightward.

[Ahernandez18]

Answer to Question 1

C

Answer to Question 2

E

[washai]

Gracias!

[coreycathey]

Excellent