In reporting on real GDP growth in the second quarter of 2015, an article in the Wall
Question:
a. If companies are "drawing down inventories," is aggregate expenditure likely to have been larger or smaller than GDP?
b. Assume that the reduction in inventories was unplanned. What would you expect to happen to production in the future following an unplanned reduction in inventories?
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a If companies are drawing down their inventories aggreg...View the full answer
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