Multiple Choice
The figure shows planned aggregate expenditure and output for an economy. If output in this economy is Y2, we would expect there to be:
A) a decrease in inventories.
B) an increase in inventories.
C) no change in inventories.
D) an increase in consumption spending.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: In the equation PAE = A +
Q5: Wealth can be thought of as:<br>A) the
Q6: The effect of government spending or tax
Q7: Which of the following scenarios would cause
Q8: Economist John Maynard Keynes noted that one
Q10: The marginal propensity to consume (MPC) is
Q11: The equilibrium aggregate expenditure model:<br>A) can explain
Q12: In economics, investment refers to:<br>A) stocks.<br>B) bonds.<br>C)
Q13: If the MPC is 0.9, and the
Q14: If the domestic income of a nation's