What Happens If Aggregate Expenditures Exceeds the Level of Production

question 115

Multiple Choice

What happens if aggregate expenditures exceeds the level of production?

• A)National income exceeds the level of production and inventories will accumulate.
• B)The level of production exceeds national income and inventories will accumulate
• C)National income exceeds the level of production and inventories will be reduced.
• D)The level of production exceeds national income and inventories will be reduced
• E)National income is less than total spending and inventories will be reduced.

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Definitions:

Primary

Refers to the first or most significant condition, factor, or level in a series or system.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for certain younger people with disabilities or specific diseases.

Medical Expenses

Costs incurred in the prevention or treatment of injury or disease, including fees for physician services, medications, and hospital stays.

Independent Practice Association

An organization of independent physicians, or other healthcare providers, that contracts with health plans or directly with patients to provide care within negotiated price and service constraints.