Question

In general, when aggregate supply exceeds aggregate demand, what is likely to result?

Answer 1

when aggregate supply exceeds aggregate demand

Explanation:

when aggregate supply exceeds aggregate demand in an economy then definition start to kick in. there are more producers are available to sell then there are more consumer to buy . It means price will fall down. In result of that , traders and sellers will start to stock the inventory to sell later. Then supply will fall and meets the demand at a new equilibrium price where aggregate demand and aggregate supply is same.