If unplanned inventories are rising it means that real GDP is greater than Aggregate Expenditures. O True, this point is to the left of the equilibrium and businesses will increase employment to sell off their excess inventory. O True, this point is to the right of the equilibrium and businesses will reduce production in the future until they sell off the excess inventory. O False, rGDP will always equal AE even if inventories are rising. O False, when rGDP is greater than AE it means inventories are decreasing.
If unplanned inventories are rising it means that real GDP is greater than Aggregate Expenditures. O True, this point is to the left of the equilibrium and businesses will increase employment to sell off their excess inventory. O True, this point is to the right of the equilibrium and businesses will reduce production in the future until they sell off the excess inventory. O False, rGDP will always equal AE even if inventories are rising. O False, when rGDP is greater than AE it means inventories are decreasing.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1
![If unplanned inventories are rising it means that real GDP is greater than Aggregate Expenditures.
O True, this point is to the left of the equilibrium and businesses will increase employment to sell off their excess
inventory.
O True, this point is to the right of the equilibrium and businesses will reduce production in the future until they
sell off the excess inventory.
O False, rGDP will always equal AE even if inventories are rising.
O False, when rGDP is greater than AE it means inventories are decreasing.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1f2849b-8f51-4253-ba4c-a3f87796b4b4%2Fcfbbe61f-cd23-4a97-979a-35ce2d81c14d%2F0fcyhe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If unplanned inventories are rising it means that real GDP is greater than Aggregate Expenditures.
O True, this point is to the left of the equilibrium and businesses will increase employment to sell off their excess
inventory.
O True, this point is to the right of the equilibrium and businesses will reduce production in the future until they
sell off the excess inventory.
O False, rGDP will always equal AE even if inventories are rising.
O False, when rGDP is greater than AE it means inventories are decreasing.
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