If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?
A)GDP will rise.
B)GDP will fall.
C)Wages will rise.
D)Inventories will fall.
E)Unemployment will fall.

Question

Quizplus · Accepted Answer

A decrease in aggregate expenditure means that there is less spending in the economy. This is likely to result in a decrease in overall output, leading to a fall in GDP.

If Economists Forecast a Decrease in Aggregate Expenditure, Which of the Following