Author Question: When real GDP exceeds aggregate planned expenditure A) an unplanned increase in inventories ... (Read 44 times)

Charlie · **on:** Jun 29, 2018

When real GDP exceeds aggregate planned expenditure

A) an unplanned increase in inventories occurs.
B) real GDP remains at its equilibrium.
C) real GDP increases.
D) firms increase production.
E) an unplanned decrease in inventories occurs.

Question 2

If aggregate planned expenditures are less than real GDP, then

A) inventories increase above their planned levels and businesses increase their production.
B) unplanned inventory changes equal zero.
C) inventories decrease below their planned levels and businesses increase their production.
D) inventories increase above their planned levels and businesses decrease their production.
E) there is no equilibrium level of real GDP.