Consider the Simplest Macro Model with a Constant Price Level

Multiple Choice

Consider the simplest macro model with a constant price level and demand-determined output.If national income is less than its equilibrium level,it is likely that firms' inventories are ________,and so national income tends to ________.

A) accumulating; rise
B) accumulating; fall
C) being depleted; rise
D) being depleted; fall
E) constant; fall