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    Economics for Today Study Set 6
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    Exam 19: The Keynesian Model in Action
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    In the Aggregate Expenditures Model, If Aggregate Expenditures (AE) Are
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In the Aggregate Expenditures Model, If Aggregate Expenditures (AE) Are

Question 1

Question 1

Multiple Choice

In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:


A) inventory is depleted.
B) inventory is accumulated.
C) inventory is unchanged.
D) employment decreases.

Correct Answer:

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