If Aggregate Output Is Below Its Equilibrium Level ________

question 79

Multiple Choice

If aggregate output is below its equilibrium level ________.

• A)there is an excess demand for goods
• B)actual output is below planned expenditure
• C)firms will tend to replenish their low inventories driving output up toward equilibrium
• D)all of the above
• E)none of the above

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another country, contributing to the selling country's economy.

Imports

Goods or services brought into one country from another for sale or use.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.

Exports

Goods, services, or technology sent out of a country to be sold in another.