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The Figure Shows Planned Aggregate Expenditure and Output for an Economy

Question 93

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. The figure shows planned aggregate expenditure and output for an economy. If output in this economy is Y<sub>1</sub>, there should be _______ in production because PAE is _______ actual output. A) an increase; less than B) an increase; greater than C) no change; equal to D) a decrease; greater than If output in this economy is Y1, there should be _______ in production because PAE is _______ actual output.


A) an increase; less than
B) an increase; greater than
C) no change; equal to
D) a decrease; greater than

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