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.

c

Economics

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Higher inflation and interest rates led to ___________

Fill in the blank(s) with the appropriate word(s).

Economics

Governments can most effectively encourage a firm to produce the efficient level of output of a good whose production causes a beneficial externality by

A. increasing the demand at every price for the good. B. subsidizing the production of the good. C. taxing the production of the good. D. imposing a price ceiling on the good.

Economics