If Aggregate Planned Expenditure Is Less Than Real GDP Then

question 197

Multiple Choice

If aggregate planned expenditure is less than real GDP then

• A) consumers increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
• B) firms increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
• C) firms' inventories will increase and real GDP will decrease as production falls.
• D) firms' inventories will decrease and real GDP will decrease as production falls.