Question: Urgent please help. thank you QUESTION 1 (25 MARKS) a. Suppose that firms find that their inventories are more than planned. In this case, what

Urgent please help. thank you

QUESTION 1 (25 MARKS)

a. Suppose that firms find that their inventories are more than planned. In this case, what is the initial relationship between aggregate planned expenditure and real GDP? Illustrate and explain using the aggregate expenditure model, what adjustments, if any, take place? (15 marks)

b. Discuss the relationship between the business cycle and changes in autonomous expenditures. (10 marks)

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