(Solution) - A If the changes in inventories in the second quarter -(2025 Original AI-Free Solution)

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a. If the changes in inventories in the second quarter of 2011 were mainly planned changes, what role did they play in shifting the AE curve and changing equilibrium expenditure? Use a two-part figure (similar to that on p. 654 to answer this question.
b. What do you predict will happen to unplanned inventory changes if exports and investment increase and real GDP returns to potential GDP?