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Author Question: When aggregate planned expenditure exceeds real GDP, A) an unplanned increase in inventories ... (Read 81 times)

saliriagwu

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on: Jun 29, 2018
When aggregate planned expenditure exceeds real GDP,
 
  A) an unplanned increase in inventories occurs.
  B) real GDP remains at its equilibrium level.
  C) firms decrease production.
  D) an unplanned decrease in inventories occurs.
  E) real GDP decreases.

Question 2

When investment increases, the ________ in aggregate demand is ________ the change in investment.
 
  A) increase; the same as
  B) increase; greater than
  C) decrease; greater than
  D) decrease; the same as
  E) increase; smaller than


Athena23

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B


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