Question

Which of the following results if at a particular price level, the aggregate quantity supplied exceeds the aggregate quantity demanded?

A) A surplus causes the price level to rise.
B) Aggregate supply shifts to the left.
C) A surplus causes the price level to fall.
D) Aggregate demand shifts to the right.

Answer 1

C, A surplus causes the price level to fall

Step-by-step explanation:

Generally speaking when supply exceeds demand, prices will fall until it reaches equilibrium with demand again.