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In the short run, with predetermined prices, when output is greater than planned aggregate expenditures:

1 Answer

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Answer:

The decrease in production, is the right answer.

Step-by-step explanation:

The decrease in production because if the output is more than planned aggregate expenditure then the equilibrium point will be at a lower point. Thus, in order to reach the equilibrium level, the production has to decrease. Moreover, if the output is lower than the planned aggregate expenditure then the production should be increased to reach the equilibrium point.

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