If the level of real GDP is $14 trillion while aggregate planned expenditure is $15 trillion, then
A) inventories rise more than planned, leading firms to increase production.
B) real GDP increases and planned expenditure decreases reaching equilibrium in the middle.
C) aggregate planned expenditure decreases to reach the equilibrium of $14 trillion.
D) inventories fall more than planned, leading firms to increase production.
E) inventories rise more than planned, leading firms to cut production.
D
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A) increase real GDP only. B) increase the price level only. C) increase both real GDP and the price level. D) increase real GDP as the price level increases too.
A positive effect of opening up countries to international trade is that it results in the creation of supporting industries that provide resources to the industry in which trade takes place
a. True b. False Indicate whether the statement is true or false