When real GDP increased in the first quarter of 2017, businesses accumulated $12.2 billion in inventories, following
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When real GDP increased in the first quarter of 2017, businesses accumulated $12.2 billion in inventories, following a decrease of $2.8 billion in the previous quarter. Explain how a fall in business inventories influences aggregate demand.
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When business inventories fall it can influence aggregate demand in two ways 1 Increased Production ...View the full answer
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