If aggregate expenditure is less than GDP, inventories will
a. grow and prices will fall
b. grow and GDP will rise
c. grow and GDP will fall
d. shrink and GDP will rise
e. shrink and GDP will fall
C
Economics
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What is the difference between fiscal policy and monetary policy?
What will be an ideal response?
Economics
If output begins to grow substantially faster than capital and labor inputs, then the real business cycle model predicts, ceteris paribus, ________
A) an increase in inflation B) a decrease in employment C) a decrease in investment D) a business cycle expansion
Economics