If at a particular price level, real output from producers is greater than real output desired by purchasers, then there will be a general
A) surplus and the price level will rise.
B) surplus and the price level will fall.
C) shortage and the price level will rise.
D) shortage and the price level will fall.

Question

Quizplus · Accepted Answer

When real output from producers is greater than real output desired by purchasers, there will be a surplus of goods. This will lead to a decrease in demand and the price level will fall in order to encourage more purchases from consumers.

If at a Particular Price Level, Real Output from Producers