When the current production of goods and services in an economy is greater than planned aggregate expenditure, _____
A) inventories of goods and services will increase.
B) firms will increase production to replenish depleted inventories.
C) businesses and households will increase planned aggregate spending.
D) the price level will automatically rise to restore equilibrium in the economy.
E) leakages must equal planned injections.

Question

Quizplus · Accepted Answer

When the current production of goods and services in an economy is greater than planned aggregate expenditure, there will be a surplus of goods and services in the market, which means that inventories of goods and services will increase.

When the Current Production of Goods and Services in an Economy