When the Current Production of Goods and Services in an Economy

question 79

Multiple Choice

When the current production of goods and services in an economy is greater than planned aggregate expenditure, _____

• A) inventories of goods and services will increase.
• B) firms will increase production to replenish depleted inventories.
• C) businesses and households will increase planned aggregate spending.
• D) the price level will automatically rise to restore equilibrium in the economy.
• E) leakages must equal planned injections.

---

Definitions:

Conglomerate

A large corporation composed of diverse companies operating in multiple industries or sectors.

Indoor Amusement Park

A type of amusement park that is located entirely indoors, offering various attractions and entertainment activities in a controlled environment.

Retailing Mix

The combination of factors that a retailer uses to influence the consumer's decision to purchase, including product, price, place, and promotion.

Loblaws

A Canadian supermarket chain that offers grocery and pharmaceutical products, known for its brand presence and community initiatives.