If real GDP equals aggregate planned expenditure, then inventories
A) fall below their target levels.
B) rise above their target levels.
C) equal their target levels.
D) are either above or below their target levels depending on whether planned inventories are above or below their target levels.
E) None of the above answers is necessarily correct because there is no relationship between inventories and aggregate planned expenditure.
C
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One difference between oligopoly and monopolistic competition is that
A) a monopolistically competitive industry has fewer firms. B) in monopolistic competition, the products are identical. C) monopolistic competition has barriers to entry. D) fewer firms compete in oligopoly than in monopolistic competition.
You are planning a graduation trip to Mexico. Other things the same, if the dollar appreciates relative to the peso, then
a. the dollar buys fewer pesos. Your hotel room in Mexico will require fewer dollars. b. the dollar buys fewer pesos. Your hotel room in Mexico will require more dollars. c. the dollar buys more pesos. Your hotel room in Mexico will require fewer dollars. d. the dollar buys more pesos. Your hotel room in Mexico will require more dollars.