If Planned Aggregate Expenditure Is Below Potential GDP and Planned

question 115

Multiple Choice

If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP, then:

• A)actual inventory investment will be less than planned inventory investment.
• B)actual inventory investment will be greater than planned inventory investment.
• C)the economy is in equilibrium at less than full employment.
• D)the economy is at full employment.