Assume the economy is currently experiencing aggregate expenditures greater than aggregate income. The economy will move toward equilibrium as businesses begin to produce _____, leading to _____ employment and _____ income.
A) more; less; less
B) less; less; less
C) less; more; more
D) more; more; more

Question

Quizplus · Accepted Answer

When aggregate expenditures are greater than aggregate income, businesses will increase production to meet the higher demand, leading to more employment and higher income, moving the economy toward equilibrium.

Assume the Economy Is Currently Experiencing Aggregate Expenditures Greater Than