A rise in aggregate demand causes which of the following?
A)a lowering of the level of output prices relative to input prices
B)a cutback in production
C)moderate layoffs
D)an initial fall in inventories

Question

Quizplus · Accepted Answer

An increase in aggregate demand typically leads to an initial fall in inventories as firms sell more goods than they anticipated, prompting them to increase production to replenish their stocks.

A Rise in Aggregate Demand Causes Which of the Following