FIGURE 21-3 -Refer to Figure 21-3.If National Income Is Y₁ and the and the Aggregate

question 5

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3.If national income is Y₁ and the aggregate expenditure function is AE₁,then desired aggregate expenditure

• A)exceeds income and income will rise.
• B)exceeds income and income will fall.
• C)is less than income and income will rise.
• D)is equal to income and income will not change.
• E)is less than income and income will fall.