In the Short-Run Macro Model,if Aggregate Expenditure Is Less Than

Multiple Choice

In the short-run macro model,if aggregate expenditure is less than GDP,output will

A) decline as firms cut production to stop the buildup of inventories
B) decline as firms increase their prices to stop the buildup of inventories
C) increase as firms increase production to try to stop depletion of inventories
D) increase as firms cut their prices to try to stop depletion of inventories
E) remain unchanged indefinitely unless government takes action