When We Compare PAE and Actual Output (Y) If PAE

question 65

Multiple Choice

When we compare PAE and actual output (Y) if PAE is greater than Y we expect that:

• A) inventories to increase.
• B) inventories to decrease.
• C) there will be no change in inventories.
• D) the government will spend more than it has collected in taxes.

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Definitions:

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