If the output level is such that the aggregate expenditure line lies below the 45-degree line/Y=AE line, which of the following is true? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Aggregate expenditure is greater than output, so inventories will decrease and output will a increase. b Aggregate expenditure is less than output, so inventories will increase and output will decrease. Aggregate expenditure is less than output, so inventories will decrease and output will increase. Aggregate expenditure is greater than output, so inventories will increase and output will d decrease.

If the output level is such that the aggregate expenditure line lies below the 45-degree line/Y=AE line, which of the following is true? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Aggregate expenditure is greater than output, so inventories will decrease and output will a increase. b Aggregate expenditure is less than output, so inventories will increase and output will decrease. Aggregate expenditure is less than output, so inventories will decrease and output will increase. Aggregate expenditure is greater than output, so inventories will increase and output will d decrease.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.B: The Multiplier With Variable Imports

Problem 3TY

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Question

If the output level is such that the aggregate expenditure line lies below the 45-degree line/Y=AE line,
which of the following is true?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
Aggregate expenditure is greater than output, so inventories will decrease and output will
a
increase.
b
Aggregate expenditure is less than output, so inventories will increase and output will decrease.
C
Aggregate expenditure is less than output, so inventories will decrease and output will increase.
Aggregate expenditure is greater than output, so inventories will increase and output will
d
decrease.

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