If Aggregate Expenditure Is Greater Than GDP,how Will the Economy

question 96

Multiple Choice

If aggregate expenditure is greater than GDP,how will the economy reach macroeconomic equilibrium?

• A)Inventories will decline,and GDP and employment will decline.
• B)Inventories will rise,and GDP and employment will decline.
• C)Inventories will decline,and GDP and employment will rise.
• D)Inventories will rise,and GDP and employment will rise.

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Definitions:

Product Life Cycle

The stages a product goes through from its introduction to the market until its decline and eventual withdrawal.