Multiple Choice
FIGURE 21-3 Refer to Figure 21-3.Assuming AE0 is the prevailing aggregate expenditure function,at a level of national income equal to Y3 we can state that
A) consumption is greater than desired aggregate expenditure.
B) consumption is less than desired aggregate expenditure.
C) desired aggregate expenditure is greater than output.
D) desired aggregate expenditure is less than output.
E) desired saving is less than zero.
Correct Answer:
Verified
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