Identify the correct sequence relating to equilibrium in an economy:

1. Inventories in hand with the producers start falling
2. This process continued till aggregate demand becomes equal to aggregate supply
3. When planned demand exceeds planned output
4. Producers will plan to raise production and employment.
5. It means Buyers are planning to buy more goods and services than producers are planning to produce

Choose the correct answer from the options given below:

C, E, A, D, B

When planned demand exceeds planned output. It means that the buyers are planning to buy more of the goods and services than the producers are planning to produce, which results in a fall in the inventories in hands of the producers. Thus, producers will plan to raise its production and employment to meet the aggregate demand in the economy. It would result in an increase in the aggregate supply of the commodity in the economy. This process will continue till the aggregate demand becomes equal to the aggregate supply.