If real GDP _ planned expenditure, the economy converges to equilibrium expenditure because inventories ___ and firms

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If real GDP _______ planned expenditure, the economy converges to equilibrium expenditure because inventories _________ and firms increase production.

A. Exceeds; pile up

B. Exceeds; are run down

C. Is less than; are run down

D. Is less than; pile up

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 21, 2018 07:51 AM

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If real GDP _______ planned expenditure, the economy converges to equilibrium expenditure because inventories _________ and firms

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C If real GDP is less than plann...View the full answer

Foundations of Macroeconomics

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If real GDP _ planned expenditure, the economy converges to equilibrium expenditure because inventories ___ and firms