Suppose the Equilibrium Level of Expenditure Is $13 Trillion

question 56

Multiple Choice

Suppose the equilibrium level of expenditure is $13 trillion. If real GDP is $14 trillion, then planned expenditures

• A) are less than real GDP, and real GDP will increase.
• B) exceed real GDP, and real GDP will increase.
• C) are less than real GDP, and real GDP will decrease.
• D) are equal to real GDP, and there will be no change in real GDP.

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