In the aggregate expenditures model, if aggregate expenditures (AE) equal $4 trillion and GDP equals $3 trillion, then:
A) inventory depletion equals − $1 trillion.
B) inventory accumulation equals $1 trillion.
C) investment equals − $1 trillion.
D) investment equals $1 trillion.
Correct Answer:
Verified
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Q23: Exhibit 9-1 GDP and consumption data
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Q25: Exhibit 9-3 Keynesian aggregate expenditures model
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