If Real GDP Is $16 Trillion and Planned Aggregate Expenditure

question 464

Multiple Choice

If real GDP is $16 trillion and planned aggregate expenditure is $16.5 trillion, inventories will be

• A) below their target and real GDP will increase.
• B) below their target and real GDP will decrease.
• C) above their target and real GDP will decrease.
• D) above their target and real GDP will increase.