If aggretate exppenditure is greater than total income: investment will decrease because such a high level cannot be sustained. planned savings will decrease in line with investment. output will increase to replenish depleted inventories. investment will decrease to run down excessive inventories. there is an error, since the two are same by definition
If aggretate exppenditure is greater than total income: investment will decrease because such a high level cannot be sustained. planned savings will decrease in line with investment. output will increase to replenish depleted inventories. investment will decrease to run down excessive inventories. there is an error, since the two are same by definition
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
If aggretate exppenditure is greater than total income:
investment will decrease because such a high level cannot be sustained. |
||
planned savings will decrease in line with investment. |
||
output will increase to replenish depleted inventories. |
||
investment will decrease to run down excessive inventories. |
||
there is an error, since the two are same by definition |
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