If aggregate planned expenditures equal real GDP, then
A) unplanned inventory changes equal zero.
B) inventories decrease below their planned levels and businesses increase their production.
C) inventories decrease below their planned levels and businesses decrease their production.
D) inventories increase above their planned levels and businesses decrease their production.
E) there is no equilibrium level of real GDP.
Question 2
If there is a surplus of a good, the quantity demanded is ________ the quantity supplied and the price will ________.
A) equal to; fall
B) less than; rise
C) less than; fall
D) greater than; fall
E) greater than; rise
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