When aggregate expenditure at a particular level of GDP is more than output,
A) output will increase
B) output will decrease
C) output will remain constant
D) there is not enough information to determine what happens to output
E) prices will rise

Question

Quizplus · Accepted Answer

When aggregate expenditure exceeds output, it indicates that demand is greater than supply, leading to an increase in output to meet the higher demand.

When Aggregate Expenditure at a Particular Level of GDP Is