Suppose the economy enters an unexpected recession. What would happen to the unplanned inventory of a company
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Suppose the economy enters an unexpected recession. What would happen to the unplanned inventory of a company like General Motors? What will happen to the unplanned inventory if the economy experiences a larger-than-expected expansion? Construct a graph that shows planned aggregate expenditure and aggregate output and identify each of these situations on the graph. What needs to happen to output in each situation to reach equilibrium?
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If the economy enters an unexpected recession it is likely that consumer spending will decrease In such a situation the demand for automobiles includi...View the full answer
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Related Book For 
Principles Of Macroeconomics
ISBN: 9781292303826
13th Global Edition
Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster
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