Consider a Simple Macro Model with a Constant Price Level

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.When national income falls short of desired aggregate expenditures,unplanned inventory ________ will induce firms to ________ the rate of output production.

A) depletion; lower
B) depletion; raise
C) buildup; lower
D) buildup; raise
E) at zero; maintain the current