Hello I have a math economics question and have provided the question via image. On the question I need help on figuring out if (True or False): The most fundamental assumption behind the aggregate expenditure model is that prices in the economy areflexible. Also, When aggregate expenditure isgreater thanreal GDP, there is an unplanned (increase or decrease) in business inventories? This unplanned change in inventories will cause the actual level of investment to be (less or greater)? than the planned level of investment (I), which will prompt firms to (increase or decrease)? employment and production.

I have done the first part of the question (: here are the images

2. A tabular approach to equilibrium GDP in a private closed economy This table shows some information on a private closed economy. Recall that a private closed economy is one that does not have a government and does not trade with the rest of the world. Therefore, the only components of aggregate expenditure are consumption (C) and planned investment spending (1). In this problem, assume that planned investment spending is independent of the economy's real GDP level. Also note that real GDP is equal to disposable income in a private closed economy. Using the numbers provided in the table, enter the missing numbers in the empty cells. Then, using the drop-down selection menus in the right-most column, indicate whether output will tend to rise, fall, or remain in equilibrium at each level of real GDP in the table. Note that the table uses negative numbers to indicate an unplanned decrease in inventories and positive numbers to indicate an unplanned increase in inventories. Real Aggregate Unplanned Changesin Tendency GDP Consumption Saving Investment Expenditure Inventories ofOutput 1. 400 340 60 160 500 100 Increase V 2. 500 110 160 550 Increase v 3. 600 440 E 160 600 E Equilibrium v 4. 700 490 210 160 650 Decrease v 5. 800 540 260 160 700 100 Decrease V True or False: The most fundamental assumption behind the aggregate expenditure model is that prices in the economy are flexible. 0 True 0 False When aggregate expenditure is greater than real GDP, there is an unplanned in business inventories. This unplanned change in inventories will cause the actual level of investment to be than the planned level of investment (I), which will prompt firms to employment and production