Within the Framework of the Keynesian Model, If Aggregate Expenditures

Multiple Choice

Within the framework of the Keynesian model, if aggregate expenditures exceed aggregate output, then:

A) the inventories of firms would decline, and the firms would expand output in order to restore their inventories to desired levels.
B) the inventories of firms would increase, and the firms would reduce output until inventories were cut back to the desired level.
C) the current level of income would persist in the future.
D) firms would reduce their investment, and the economy would fall into a recession.