Question

When aggregate demand is greater than aggregate supply, inventories

A) 

fall

B) 

rise

C) 

do not change

D) 

first fall, then rise​

Answer 1

Answer:

option ( b )

Explanation:

mark as brainliest

Answer 2

Answer:

d. Because if the aggregate expenditure of consumers and producers on various final goods and services (AD) exceeds the total output actually being produced and supplied in the market by the producing sector(AS), then the inventory/stock of goods/services would fall below the desired level.

But, in order to bring back the AD and AS in a state of equilibrium, the level of employment, would have to be increased by the producing sector which would lead to a rise in the output(AS)/stock. This would go on till such point AD = AS(Equilibrium)

Hope this helped:)