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dMaterans7 141 final exam fall 2017-Tuesday Night 6-8:30 Spending astputGDP) Con

ID: 1120596 • Letter: D

Question

dMaterans7 141 final exam fall 2017-Tuesday Night 6-8:30 Spending astputGDP) Consumption Billiom) Lnvtmest Argregate bi 1ions)Billions) ilons) Expanditures S4 $240 $240 $5 $16 16 16 16 16 16 16 16 16 292 288 320 340 360 320 336 368 economy depicted in the table above, if produced real output is equal to 360 and there is unemployment, which of the following will ccur? Select one: a. there will be unplanned increases in inventory b. there will be unplanned decreases in inventory c.there is equilibrium O d. none of the above Next page ge

Explanation / Answer

a) there will be unplanned increases in inventory.

When GDP > Aggregate expenditure than there will be unplanned inventory investment which means stock of unsod goods increases as a result firms will produce less output in subsequent period.