Using the aggregate expenditures-output model, if aggregate expenditures (aggregate demand) is $10 trillion and aggregate output is $10.3 trillion:
a. businesses will accumulate inventories, and output will decline.
b. real output will increase if the full-employment capacity of the economy is greater than $10.3 trillion.
c. inflation will be a problem if the full-employment capacity of the economy exceeds $10.3 trillion.
d. both b and c are correct.