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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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