Answer to Question #338904 in Macroeconomics for Arnau Rojas

Question

Choose the INCORRECT option:

(a) Only in one of the labelled points we will find production equals aggregate demand

(b) If we are in C, we know that consumption will tend to increase

(c) If we are in B, we know that investment will tend to increase

(d) In F there is excess supply of goods (e) None of the points identified in the graph is the short run equilibrium

Answer 1

(c) If we are in B, we know that investment will tend to increase