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The graph shows a simple two - sector economy whose current output level is Y 1 . Which of the statements below correctly describes how

The graph shows a simple two-sector economy whose current output level is Y1. Which of the statements below correctly describes how the economy moves toward the equilibrium income Y**?
A. Since aggregate expenditures at Y1 are greater than real GDP, investment will decrease and real output will fall.
B. Since aggregate expenditures are less than real GDP at Y1, output will fall.
C. At Y1, firms will experience unexpected increases in inventories and will increase production until the economy reaches equilibrium.
D. At Y1, firms will experience unexpected increases in inventories and will reduce production until equilibrium GDP has been attained.
E. At Y1, firms will experience an unexpected decrease in inventories. In response, they will increase production, and therefore output will rise.
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