Question

Aggregate expenditure (cons of 2002 dollars) 1800 45 degreeing 1.2 Extra Problem 2 (static) Click on the icon to read the news clio, then complete the following steps. Business invertors fall when real GOP because O A Inventories are falling from above target to their target levels OB firms put more production time into producing consumption goods and services OC. Semput more production to producing exports OD both and record 00 AE 1400 10 1000 Real GOP 2002 >>> Dorty the bed in the question

Answer 1

Answer: D

An increase in GDP indicates the domestic demand and demand for exports are on the rise. So, businesses are increasingly focused towards meeting this raising demand rather than holding on to more of the goods viz inventories. Therefore the shift of priorities in this case contributes to the fall in business inventories. Hence, both options B and C are correct.

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