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NYC NYC
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8 years ago
Assume an economy is in equilibrium at an output level of $1,000 billion. If government spending decreases by $100 billion, then at the output level of $1,000 billion, there is:
A) an unplanned fall in inventories.
B) an unplanned rise in inventories.
C) an unplanned inventory change of zero.
D) either an unplanned increase or decrease in inventories depending on the value of the MPC.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
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JesslynJesslyn
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NYC Author
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#2
8 years ago
I was thinking the same, thank you
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