Refer to the above figure. If real GDP is 4 trillion, then
A) actual investment spending equals 1 trillion as planned investment spending plus unplanned inventory increases equal 1 trillion.
B) consumption expenditures are too low.
C) unplanned inventories will decrease.
D) unplanned inventories will increase.
Question 2
Which of the following causes autonomous consumption to decrease?
A) a decrease in consumer income
B) consumers becoming more optimistic about future decreases in the price level
C) an increase in average family size
D) consumers becoming more thrifty
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