Multiple Choice
If the output level is such that the aggregate expenditure line lies below the 45-degree line,which of the following is true?
A) Aggregate expenditure is greater than output,so inventories will increase and output will be raised.
B) Aggregate expenditure is greater than output,so inventories will decrease and output will be increased.
C) Aggregate expenditure is less than output,so inventories will decrease and output will be raised.
D) Aggregate expenditure is less than output,so inventories will increase and output will be lowered.
E) Aggregate expenditure is greater than output,so inventories will increase and output will be lowered.
Correct Answer:
Verified
Correct Answer:
Verified
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