(Figure: Aggregate Expenditures)The Figure Shows the Aggregate Expenditures Line for an Economy.Which

Multiple Choice

(Figure: Aggregate Expenditures) The figure shows the aggregate expenditures line for an economy.Which is the proper sequence of events if income was originally at $100?

A) Total spending exceeds income;firms reduce production;workers are laid off;and incomes fall until equilibrium is reached.
B) Total income exceeds spending;firms expand production;workers are hired;and incomes rise until equilibrium is reached.
C) Total spending exceeds income;firms expand production;workers are hired;and incomes rise until equilibrium is reached.
D) Total income exceeds spending;firms reduce production;workers are laid off;and incomes fall until equilibrium is reached.