Economics · Determination of Income and Employment
An unplanned decumulation of inventories in an economy implies that:
- 1There is deficient demand in the market
- 2The economy is in a state of macroeconomic equilibrium
- 3Aggregate Supply is greater than Aggregate Demand (AS > AD)
- 4Aggregate Demand is greater than Aggregate Supply (AD > AS)✓
Correct answer
Aggregate Demand is greater than Aggregate Supply (AD > AS)
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