Answered: When aggregate production is less than…

When aggregate production is less than aggregate expenditures, the economy is in equilibrium. O there are decreases in inventory. O total output will decrease.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter23: The Aggregate Expenditure Model

Section: Chapter Questions

Problem 12P

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Question

When aggregate production is less than aggregate expenditures,
the economy is in equilibrium.
O there are decreases in inventory.
O total output will decrease.

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