Choose the Correct from Given Options When Aggregate Demand is Greater than Aggregate Supply, Inventories - Economics

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MCQ

Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories

Options

  • fall

  • rise

  • do not change

  • first fall, then rise

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Solution

When aggregate demand is greater than aggregate supply, inventories fall.
Hence, the correct answer is option fall.

Concept: Concept of Aggregate Demand and Aggregate Supply
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