QUESTION 2 AE AE=Y AE=C+H+G+NX 500 400 A 200 . 45 degree Y potential Y, real output A. If the economy were to produce the potential output level, the AE would be greater than the potential output level. B. . If the economy were to produce the potential output, there would be an unexpected increase in inventory. If the economy were to produce the potential output level, firms are likely to cut down on production D. A,B&C E. None of the above