If Y AE:
A)the economy is producing more than potential GDP.
B)the stock of inventories will fall in the economy.
C)managers will respond by ramping up production.
D)managers will respond by lowering production.

Question

If Y > AE:
A)the economy is producing more than potential GDP.
B)the stock of inventories will fall in the economy.
C)managers will respond by ramping up production.
D)managers will respond by lowering production.

Quizplus · Accepted Answer

The Answer of If Y > AE:
A)the economy is producing more than potential GDP.
B)the stock of inventories will fall in the economy.
C)managers will respond by ramping up production.
D)managers will respond by lowering production.