Explain If an economy is to the left of the equilibrium level of GDP on the Keynesian cross diagram, thenaggregate output is,than aggregate demand, and firms willtheir investment ininventories so that equilibrium is reestablished.greater; increaseless; increasegreater: decreaseless: decrease

In the Keynesian model, the aggregate expenditures in the economy can be determined using the…

If an economy is to the left of the equilibrium level of GDP on the Keynesian cross diagram, then aggregate output is than aggregate demand, and firms will inventories so that equilibrium is reestablished. their investment in greater; increase less; increase greater: decrease O less: decrease

If an economy is to the left of the equilibrium level of GDP on the Keynesian cross diagram, then aggregate output is than aggregate demand, and firms will inventories so that equilibrium is reestablished. their investment in greater; increase less; increase greater: decrease O less: decrease

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 6QP

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Question

Explain

If an economy is to the left of the equilibrium level of GDP on the Keynesian cross diagram, then
aggregate output is,
than aggregate demand, and firms will
their investment in
inventories so that equilibrium is reestablished.
greater; increase
less; increase
greater: decrease
less: decrease

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