Advertisements
Advertisements
Question
When aggregate demand is greater than aggregate supply, inventories:
Options
fall
rise
do not change
first fall, then rise
MCQ
Solution
fall
Explanation:
When aggregate demand exceeds aggregate supply, the flow of products and services in the economy tends to be less than demand, which indicates that producers' current stock is depleted.
shaalaa.com
Is there an error in this question or solution?
