Suppose the Equilibrium Level of Expenditure Is $13 Trillion

question 361

Multiple Choice

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

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

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