Author Question: Assuming that C + Ir + G < C + I + G, then a. there is an unintended inventory accumulation. ... (Read 13 times)

segrsyd · **on:** Jun 30, 2018

Assuming that C + Ir + G < C + I + G, then

a. there is an unintended inventory accumulation.
b. there is an unintended inventory shortfall.
c. aggregate demand is less than output.
d. Both b and c

Question 2

A pure positive income shock leads to

A) an increase in leisure and consumption.
B) an increase in leisure and work.
C) an increase in work and consumption.
D) an increase in leisure and taxes.