The adjustment starts when ex-ante demand exceeds planned output (D). This causes unintended decumulation of inventories (A). Producers respond by raising output (C). Higher output raises employment and income (E). This process continues until ex-ante AD equals ex-ante AS (B). Sequence: D, A, C, E, B.
Arrange the sequence of events relating to establishment of equilibrium in the economy. (A) This will cause unintended decumulation of inventories…
CUET UG 2023 — Economics Macro
2023mcqmedium
Arrange the sequence of events relating to establishment of equilibrium in the economy.
(A) This will cause unintended decumulation of inventories
(B) This process continues till ex-ante aggregate demand becomes equal to ex-ante aggregate supply
(C) The producers will respond by increasing output
(D) If ex-ante demand for final goods by firms and households is greater than the output the producers plan to produce in a given year
(E) When output increases, both employment and income rise
Choose the correct answer from the options given below :
Official previous-year question
Verified 13 Jul 2026.
Options
- A
(A), (C), (B), (E), (D)
- B
(D), (A), (C), (E), (B)
- C
(A), (E), (C), (B), (D)
- D
(D), (C), (B), (E), (A)
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