If aggregate expenditures equals $6,200 and aggregate income equals $5,800, businesses will produce:
A) more, raising both employment and income.
B) less, lowering both employment and income.
C) more, raising employment and lowering income.
D) less, lowering employment and raising income.

Question

Quizplus · Accepted Answer

When aggregate expenditures exceed aggregate income, businesses will increase production to meet the higher demand, which will raise both employment and income.

If Aggregate Expenditures Equals $6,200 and Aggregate Income Equals $5,800