If AE Y, which of the following will NOT occur?
A)inventories will decline
B)actual investment will be more than planned investment
C)employment will increase
D)GDP will increase

Question

If AE > Y, which of the following will NOT occur?
A)inventories will decline
B)actual investment will be more than planned investment
C)employment will increase
D)GDP will increase

Quizplus · Accepted Answer

If AE (Aggregate Expenditure) is greater than Y (Output), actual investment will be less than planned investment because firms will sell more than they planned, reducing inventories.

If AE > Y, Which of the Following Will NOT