If an economy is producing a level of output which is higher than the equilibrium level, planned expenditures ________ total output and ________ goods and services are being produced than are being demanded.
A) exceed; more
B) exceed; fewer
C) are less than; more
D) are less than; fewer

Question

Quizplus · Accepted Answer

When an economy is producing above the equilibrium level, planned expenditures (or aggregate demand) are less than the total output, indicating that more goods and services are being produced than are being demanded.

If an Economy Is Producing a Level of Output Which