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NYC NYC
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8 years ago
Assume an economy is in equilibrium at an output level of $800 billion. If government purchases decrease by $100 billion, then at the output level of $800 billion, there is:
A) an unplanned decrease in inventories.
B) an unplanned inventory change of zero.
C) an unplanned increase in inventories.
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
Authors:
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JesslynJesslyn
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NYC Author
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8 years ago
Thanks for answering Slight Smile
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