Suppose the expenditure line is given by the equation E = 800 + .75Y, and output is equal to 3,000. Which of the following is true?
A) There is an incentive for firms to increase output.
B) Spending is less than income.
C) Spending is equal to income.
D) The economy is in equilibrium.
E) There is too much output.
Correct Answer:
Verified
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