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

Question

Quizplus · Accepted Answer

An increase in aggregate expenditure implies an increase in demand for goods and services, leading to an increase in production and GDP. Choice B, C, D, and E are all unlikely to occur with an increase in aggregate expenditure.

If Economists Forecast an Increase in Aggregate Expenditure, Which of the Following