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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