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In macroeconomic theory, total or aggregate spending is denoted by A and total or aggregate production of income by Y

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In macroeconomic theory, total or aggregate spending is denoted by A and total or aggregate
production of income by Y. Which one of the following statements is incorrect? (4 marks)
A When A is greater than Y, there is disequilibrium and Y will tend to increase.
B When A is equal to Y, there is equilibrium and Y will remain unchanged.
C When A is less than Y, there is disequilibrium and Y will decrease.
D When A is greater than Y, there is disequilibrium and A will decrease.

3. Simon borrowed R10 000 from the bank at the end of 2011 at a fixed interest rate of 20%. At the end of 2012, the
inflation rate was 25%. Inflation has been ________ to Simon; the real value of his loan plus interest
payments changed to ________. (4 marks)
A Beneficial; R9 600
B Beneficial; R4 800
C Beneficial; R8 000
D Costly; R12 500