Question

In the aggregate expenditures model, if aggregate expenditures are higher than real GDP: A. actual real output is greater than equilibrium real output. B. there are unplanned decreases in inventories. C. aggregate output decreases. D. employment decreases.

Answer 1

B. there are unplanned decreases in inventories.

Step-by-step explanation:

Remember that aggragate expenditures are the amount of products and services that a economy consumes, if that is higher that the GDP which is basically what the economy of a country consume, you will end up with a shortage of products and services to supply that extra aggregate expenditures that you didn´t account for.