If the output level is such that the Y=AE line (45-degree line) is above the aggregate expenditure 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. a Aggregate expenditure is greater than output, so inventories will decrease and output will 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. d Aggregate expenditure is greater than output, so inventories will increase and output will decrease.

If the output level is such that the Y=AE line (45-degree line) is above the aggregate expenditure 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. a Aggregate expenditure is greater than output, so inventories will decrease and output will 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. d Aggregate expenditure is greater than output, so inventories will increase and output will decrease.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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