-At an output level of $2.0 trillion:
A) there are no leakages from the spending stream.
B) businesses will experience reductions in inventories.
C) the economy will go into equilibrium if spending decreases.
D) injections into the spending stream are less than leakages from the spending stream.

Question

-At an output level of $2.0 trillion:
A) there are no leakages from the spending stream. 
B) businesses will experience reductions in inventories. 
C) the economy will go into equilibrium if spending decreases. 
D) injections into the spending stream are less than leakages from the spending stream.

Quizplus · Accepted Answer

At an output level of $2.0 trillion, if businesses experience reductions in inventories, it indicates that demand is outstripping supply, suggesting an economy not in equilibrium but in a phase where output is likely to increase to meet higher demand. This does not inherently relate to the conditions described in the other options about leakages, equilibrium adjustments, or the balance of injections and leakages.

-At an Output Level of $2.0 Trillion