If aggregate demand increases, aggregate supply will increase only when there is(are) Options: A . &nbspExcess capacity B . &nbspUnder utilisation of the existing resources C . &nbspOver utilisation of the existing resources D . &nbspBoth A and B

If aggregate demand increases, aggregate supply will increase only when there is

Question

If aggregate demand increases, aggregate supply will increase only when there is(are)

Options:

A . Excess capacity

B . Under utilisation of the existing resources

C . Over utilisation of the existing resources

D . Both A and B

Answer: Option D
:
D
If aggregate demand increases, aggregate supply will increase only when there are an excess capacity and under-utilisation of the existing resources.

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