If aggregate expenditures are less than current output:
A) businesses will cut back on output.
B) businesses will produce more.
C) employment levels will rise.
D) inflation results.

Question

Quizplus · Accepted Answer

When aggregate expenditures are less than current output, it indicates that there is less demand for goods and services than what is being produced, leading businesses to cut back on output to avoid excess inventory.

If Aggregate Expenditures Are Less Than Current Output