The following diagram shows the aggregate expenditure schedule for the economy and the equilibrium condition on the 45 degree line. Round all answers to the nearest whole number.

d) What is the equilibrium income and expenditure? Equilibrium level of output and expenditure = - e) Suppose output is at J, is there an unplanned change in inventories? By how much? There would be in inventories in the amount -. unplanned increase _unplanned decrease c) How will business firms respond to this situation? Business firms will respond by Select one) output. (Select one) increasing d) What is the equilibrium income decreasing liture?Question 3 [8 points] The following diagram shows the aggregate expenditure schedule for the economy and the equilibrium condition on the 45 degree line. Round all answers to the nearest whole number. 9 121518 21242730333639 Real GDP and Income If output is K, planned expenditure would be -. Planned expenditure would be output. b) What is the size of the unplanned change in inventories at output K. The ! in inventories amounts to !. lunplanned increase I . . . c) Ho unplanned decreas spond to this Situation