FIGURE 21-3 -Refer to Figure 21-3. If National Income Is Y3 and Y3

question 147

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3. If national income is Y3 and the aggregate expenditure function is AE1,

• A) the economy is in equilibrium.
• B) there is unintended inventory accumulation and income will rise.
• C) there is unintended inventory accumulation and income will fall.
• D) there is unintended inventory decumulation and income will rise.
• E) there is unintended inventory decumulation and income will fall.

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Definitions:

Control Group

A group in a study or experiment that does not receive the experimental treatment and is used as a benchmark to gauge the effects of the intervention.

Sunscreens

Products that protect the skin from the harmful effects of ultraviolet radiation by absorbing, reflecting, or scattering sunlight.

Randomization

The process of randomly assigning study participants to different treatment or control groups to reduce biased outcomes in research.

Bias

A systematic error in the collection, analysis, interpretation, or review of data that can lead to conclusions that are systematically different from the truth.