According to Keynesians how could the economy's output deviate from its potential? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s], click twice to empty the box. When aggregate demand falls, in response rms lower production and la).r offworkers. This causes people's income to fall, thus lowering consumption expenditures furiher and causing firms to lower production. This downward spiral leads to an equilibrium where output is lower than potential output When aggregate demand falls, in response rms increase production and lay off workers. This causes people's income to increase, thus lowering consumption expenditures further and causing rms to increase production. This upward spiral leads to an equilibrium where output is higher than potential output. a When aggregate demand is high, in response firms increase production and hire workers. This causes people's income to increase, thus increasing consumption expenditures further and causing firms to increase production. This upward spiral leads to an equilibrium where output is greater than potential output. When aggregate demand increases, in response firms lower production and lay off workers. This causes people's income to increase, thus lowering consumption expenditures further and causing firms to increase production. This downward spiral leads to an equilibrium where output is lower than potential output. When aggregate demand falls, in response firms lower production and hire workers. This causes people's income to fall, thus increasing both saving and consumption expenditures further and causing firms to increase production. This leads to an equilibrium where output is equal to potential output