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Suppose the island of Catsylvania experiences a recession. As a result, consumers reduce spending on Kitty Chow and planned aggregate expenditures fall short of realGDP.
Suppose the island of Catsylvania experiences a recession. As a result, consumers reduce spending on Kitty Chow and planned aggregate expenditures fall short of realGDP.
As a result, unplanned inventories at Kitty Chow firmswill
decrease.
increase.
remain unchanged.
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