Within the framework of the aggregate expenditures model, which of the following is true?

A. When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise.
B. Equilibrium will always occur at the full-employment level of output.
C. A nation's imports will decline as the nation's disposable income increases.
D. When spending on goods and services exceeds the level of aggregate output, inventories will fall.


Answer: D

Economics

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