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If Planned Aggregate Expenditure Is Below Potential GDP and Planned

Question 189

Multiple Choice

If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP, then


A) actual inventory investment will be less than planned inventory investment.
B) actual inventory investment will be greater than planned inventory investment.
C) the economy is in a recession.
D) the economy is at full employment.
E) the economy is in an expansion.

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