Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are A. decreasing, and real Gross Domestic Product (GDP) will expand. B. decreasing, and real Gross Domestic Product (GDP) will contract. C. increasing, and real Gross Domestic Product (GDP) will expand. D. increasing, and real Gross Domestic Product (GDP) will contract

Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are A. decreasing, and real Gross Domestic Product (GDP) will expand. B. decreasing, and real Gross Domestic Product (GDP) will contract. C. increasing, and real Gross Domestic Product (GDP) will expand. D. increasing, and real Gross Domestic Product (GDP) will contract

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy

Problem 1TY

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