JAMB Economics 2011 Objective — Question 26

Question 26 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.

If aggregate demand is lower than total output in an economy, national income will

A. A. be at equilibrium
B. B. increase
C. C. fallCorrect
D. D. be constant

Explanation

When aggregate demand is lower than the total output, there is a tendency that output will fall, and national income will also fall as a result.

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