If Planned Spending Exceeds Planned Output,the Result Is

question 90

Multiple Choice

If planned spending exceeds planned output,the result is

• A)unintended inventory increases
• B)a reduction in GDP
• C)a decrease in imports
• D)an increase in government purchases
• E)unintended inventory reductions

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Definitions:

Total Surplus

The combined total of producer surplus and consumer surplus, indicating the overall societal benefits derived from the consumption and production of a service or product.

Deadweight Loss

The loss of economic efficiency that can occur when equilibrium for a good or service is not achieved.

Tariff

A tax imposed by a government on imported goods, often used to protect domestic industries and to raise government revenue.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.