If aggregate production in the economy exceeds aggregate purchases

A) unintended inventory investment is positive.
B) inventories will be drawn down.
C) there is upward pressure on real GDP.
D) aggregate purchases will tend to increase until equilibrium is achieveD.
E) firms are selling more during the year than they are producing.

Aggregate Production

The total output of goods and services produced by an economy over a given period.

Aggregate Purchases

The total amount spent on goods and services within an economy at a given period of time.

Unintended Inventory Investment

Occurs when a business accumulates inventory beyond its planned level, often due to lower than expected sales.