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Consider the Following AE Function

question 91

Essay

Consider the following AE function:
AE = 600 + 0.75Y
a)What is the value of expenditure equilibrium?
b)If income is equal to$3,000,what is the value of unplanned inventories? Will there be a surplus or a shortage?

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Definitions:

Separate Legal Personality

The legal principle that a corporation or certain other entities exist independently of their shareholders or members, capable of owning property, incurring debt, suing, and being sued.

Significant Results

Outcomes or findings that are notably impactful, meaningful, or exceed expected benchmarks, often used in the context of research, projects, or performance evaluations.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders.

Closely Held Corporations

Corporations in which there are relatively few shareholders; referred to as non-distributing corporations in some jurisdictions.

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