If aggregate expenditures are less than real GDP, then: a. both ...

[ETearle]

If aggregate expenditures are less than real GDP, then:
 a. both inventories and real GDP will decline.
  b. inventories will decline but real GDP will increase.
  c. inventories will increase and real GDP will decline.
  d. both inventories and real GDP will increase.
  e. inventories will increase but real GDP will remain unchanged.

Question 2

If the price of pizza falls, the demand for pizza will rise.
 a. True
  b. False
  Indicate whether the statement is true or false

[Smiles0805]

Answer to Question 1

c

Answer to Question 2

False

[ETearle]

Correct answers!

[Smiles0805]

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