Question
If actual income is Y1, explain the process by which national income changes toward equilibrium. If the level of actual national income is Y1, the
If actual income is Y1, explain the process by which national income changes toward equilibrium.
If the level of actual national income is Y1, the desired level of expenditures will be greater than the level of actual output.Therefore, the inventories of the firms will
be depleted
accumulate
over time. As aresult, firms will
increase
decrease
the level of their output.
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
