If An Unintended Increase In Business Inventories Occurs At Some Level Of Gdp, Then Gdp

Sabtu, 09 Juli 2022

If An Unintended Increase In Business Inventories Occurs At Some Level Of Gdp, Then Gdp

REGGINA S Juli 09, 2022 Comment

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Businesses make decisions about investment projects based on anticipated profits. Additional spending lowers the real interest rate and leads to further borrowing and spending by businesses. Aggregate expenditures equal gdp. If an unintended increase in business inventories occurs at some level of gdp, then gdp:

If an unintended (unplanned) increase in business inventories occurs at the current level of real gdp, then: A) real production is too low for general equilibrium. O b) the price level is too high for general equilibrium. C) aggregate expenditures exceed the rate of production. O d) the price level is too low for general equilibrium. If an unintended increase in business inventories occurs at some level of gdp, then gdp. Is too high for equilibrium. At the $180 billion equilibrium level of income, saving is $38 billion in a private closed economy. Planned investment must be.