Question 1
Aggregate output will increase if there is a(n)
◦ increase in saving.
◦ unplanned rise in inventories.
◦ unplanned fall in inventories.
◦ decrease in consumption.
Question 2
A decrease in planned investment causes
◦ output to increase.
◦ output to decrease, but by a smaller amount than the decrease in investment.
◦ output to decrease, but by a larger amount than the decrease in investment.
◦ output to decrease by an amount equal to the decrease in investment.