If Aggregate Planned Expenditures Are Less Than Real GDP Then

question 273

Multiple Choice

If aggregate planned expenditures are less than real GDP then

• A) the economy remains in disequilibrium until aggregate planned expenditures increase to the level of real GDP.
• B) firms' inventories will increase and real GDP will decrease as production falls.
• C) firms must increase their planned expenditures until aggregate planned expenditures increase to the level of real GDP.
• D) firms' inventories will decrease and real GDP will decrease as production falls.

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