Which of the following statements is/are true? If aggregate expenditure is equal to total income, this means i. nothing, because they are always equal by definition. ii. the economy is in equilibrium because people are spending all they desire to spend. iii. inventories will remain at their planned levels. iv. investment will decrease to run down inventories. v. investment will increase to build up inventories.

Which of the following statements is/are true? If aggregate expenditure is equal to total income, this means i. nothing, because they are always equal by definition. ii. the economy is in equilibrium because people are spending all they desire to spend. iii. inventories will remain at their planned levels. iv. investment will decrease to run down inventories. v. investment will increase to build up inventories.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter23: The Aggregate Expenditure Model

Section: Chapter Questions

Problem 3P

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