When output exceeds spending:
A)there is unsold output, and level of output will fall
B)there is unsold output, and level of output will rise
C)there is unsold output, and level of spending will rise
D)there is no unsold output since the level of spending will rise

Question

Quizplus · Accepted Answer

When output exceeds spending, it means that not all goods produced are being purchased, leading to unsold output. This situation typically results in a reduction of production levels as businesses adjust to the lower demand, causing the level of output to fall.

When Output Exceeds Spending