Multiple Choice
What happens if aggregate expenditures exceeds the level of production?
A) National income exceeds the level of production and inventories will accumulate.
B) The level of production exceeds national income and inventories will accumulate
C) National income exceeds the level of production and inventories will be reduced.
D) The level of production exceeds national income and inventories will be reduced
E) National income is less than total spending and inventories will be reduced.
Correct Answer:
Verified
Correct Answer:
Verified
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