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Assume that we find the actual level of output, Y, is greater than the planned level of spending (E p ) at that level of
Assume that we find the actual level of output, Y, is greater than the planned level of spending (Ep) at that level of Y. We may conclude that
- The level of unplanned investment will be zero
- The level of unplanned investment will be negative
- The level of unplanned investment will be positive
- The level of both planned and unplanned investment will rise in response the gap between Y and planned spending
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