question archive The relationship between aggregate expenditure and real GDP is best described by which of the following? A

The relationship between aggregate expenditure and real GDP is best described by which of the following? A

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The relationship between aggregate expenditure and real GDP is best described by which of the following?

A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future.

B. If aggregate expenditure is higher than real GDP, inventories will accumulate and real GDP and aggregate income will fall in future.

C. If aggregate expenditure is equal to real GDP, inventories will decrease and real GDP and aggregate income will increase in future.

D. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future.

Option 1

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