Assume we are at an income level where the C+I+G+X (consumption+investment+government spending+net exports) function lies above the 45-degree line.We can conclude that at this income level:
A) unplanned inventories are likely to accumulate.
B) the economy is in equilibrium.
C) households will save more money than they spend.
D) aggregate expenditures are less than output.
E) there will be pressure to expand production.
Correct Answer:
Verified
Q2: The table given below shows the levels
Q3: The table given below states the value
Q4: The table given below states the value
Q5: At the equilibrium level of income, which
Q6: The table given below states the value
Q8: The equilibrium level of income will rise
Q9: The figure given below represents the leakages
Q10: The figure given below shows the aggregate
Q11: Which of the following can be considered
Q12: The figure given below shows the aggregate
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