Answer:
Step-by-step explanation:
When Aggregate demand surpasses the production supply, there will be an increase in prices. Thus Option D is the answer.
Aggregate demand refers to the calculation of the amount of demand that is produced in the economy. It increases when there is a rise in investment.
If the aggregate demand Cannot meet the demand, there are few possibilities that can occur. for example:
1. There can be a shortage in the available resources which can lead to black markets etc.
2. Rbi may have to increase the interest rates to slow down consumption and spending among the public.