If Aggregate Demand exceeds Aggregate Supply, unwanted inventories will begin to accumulate, forcing firms to                           prices to get rid of those inventories.

Related MCQs

• An increase in aggregate demand (given no change in aggregate supply) will cause                            inflation.
• Which of the following is not a component of Aggregate Demand?
• Which factor would shift the Aggregate Demand curve to the right?
• A decrease in the price level shifts the               curve to the right, and the aggregate demand curve .
• Which of the following events will shift the Aggregate Supply curve to the left?
• The short-run Aggregate Supply curve is upward sloping only because we assume that resource costs are held .