If aggregate expenditures exceed real GDP, then:
A)employment falls.
B)the economy will have deflation.
C)firms are depleting their inventories.
D)the money supply will increase.

Name: If aggregate expenditures exceed real GDP, then: A)employment falls. B)the economy will have deflation. C)firms are depleting their inventories. D)the money supply will increase.
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Question

Quizplus · Accepted Answer

When aggregate expenditures exceed real GDP, firms sell more than they produce, leading to a depletion of inventories.

If Aggregate Expenditures Exceed Real GDP, Then