40
Question
If aggregate demand exceeds aggregate supply, the income rises.
If aggregate demand exceeds aggregate supply, the income rises.
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Solution
The correct option is A True
True.When Aggregate demand is more than
Aggregate supply, then the planned inventory would fall below the desired
level. To bring back the Inventory at the desired level, the producers expand
the output More output means more income. Rise in output means rise in AS
and rise in income means rise in AD.
True.
When Aggregate demand is more than
Aggregate supply, then the planned inventory would fall below the desired
level. To bring back the Inventory at the desired level, the producers expand
the output More output means more income. Rise in output means rise in AS
and rise in income means rise in AD.
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