In Figure 1 above if the economy were at Y1 then we would expect there to be:
A) a reduction in inventories.
B) an increase in inventories.
C) no change in inventories.
D) an increase in consumption spending.
Correct Answer:
Verified
Q68: When we compare PAE and actual output
Q69: When we compare PAE and actual output
Q70: Q71: One of the major insights by economist Q72: Over time in the long run we Q74: Actual investment is the: Q75: When PAE < Y the economic response Q76: Planned investment is the:
A) spending households engage
A) spending households engage
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