In Figure 1 above if the economy were at Y3 then we would expect there to be: A) an increase in production since PAE actual output. C) no change in production since PAE = actual output. D) a decrease in production since PAE

Question

In Figure 1 above if the economy were at Y3 then we would expect there to be:
A) an increase in production since PAE < actual output. 
B) an increase in production since PAE > actual output. 
C) no change in production since PAE = actual output. 
D) a decrease in production since PAE < actual output.

Quizplus · Accepted Answer

The Answer of  In Figure 1 above if the economy were at Y3 then we would expect there to be:
A) an increase in production since PAE < actual output. 
B) an increase in production since PAE > actual output. 
C) no change in production since PAE = actual output. 
D) a decrease in production since PAE < actual output.

In Figure 1 Above If the Economy Were at Y3