diagram. Consider the following diagram of the AE function and the 45° line. Desired Aggregate Expenditure L 3 P B 0 45% Y₁ Y₁ AE= Y AE Actual National Income a. Suppose the level of actual national income is Y₁. What is the level of desired aggregate expenditure? Is it greater or less than actual output? Are inven- tories being depleted or accumulated? b. If actual income is Y₁, explain the process by which national income changes toward equilibrium. c. Suppose the level of actual national income is Y2. What is the level of desired aggregate expenditure? Is it greater or less than actual output? Are inven- tories being depleted or accumulated? d. If actual income is Y2, explain the process by which national income changes toward equilibrium.