FIGURE 21-3 -Refer to Figure 21-3.If national income is Y₃ and the aggregate expenditure function is AE₁, A)the economy is in equilibrium. B)there is unintended inventory accumulation and income will rise. C)there is unintended inventory accumulation and income will fall. D)there is unintended inventory decumulation and income will rise. E)there is unintended inventory decumulation and income will fall.

Question

Quizplus · Accepted Answer

When national income is Y3 and the aggregate expenditure is AE1, the actual output exceeds planned spending, leading to unintended inventory accumulation, causing income to fall.

FIGURE 21-3 -Refer to Figure 21-3.If National Income Is Y3 and the and the Aggregate

FIGURE 21-3 -Refer to Figure 21-3.If National Income Is Y₃ and the and the Aggregate