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With Planned Expenditure and the Equilibrium Condition Y = PE

Question 38

Multiple Choice

With planned expenditure and the equilibrium condition Y = PE drawn on a graph with income along the horizontal axis, if income exceeds expenditure, then income is to the ______ of equilibrium income and there is unplanned inventory ______.


A) right; decumulation
B) right; accumulation
C) left; decumulation
D) left; accumulation

Correct Answer:

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