In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A) inventory is accumulated.
B) inventory is unchanged.
C) employment decreases.
D) employment increases.
Correct Answer:
Verified
Q33: The relationship between aggregate expenditures and disposable
Q34: Exhibit 9-1 GDP and consumption data
Q35: Exhibit 9-8 Keynesian aggregate expenditures model
Q36: Exhibit 9-2 Keynesian aggregate-expenditures model Q37: Exhibit 9-3 Keynesian aggregate expenditures model Q39: Which of the following explains why a Q40: Exhibit 9-1 GDP and consumption data Q41: If the economy spends 80 percent of Q42: Suppose that consumers become more pessimistic about Q43: A $1 million increase in investment spending
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