At all points to the right of the intersection of the aggregate output (Y)and aggregate expenditures (AE)curves, there will be unplanned inventory accumulation.

Question

Quizplus · Accepted Answer

When aggregate output (Y) exceeds aggregate expenditures (AE), it indicates that production is greater than spending, leading to unplanned inventory accumulation as goods are not being sold as quickly as they are produced.

At All Points to the Right of the Intersection of the Aggregate