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.
D
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The Great Depression was an era marked by
a. steady growth in GDP and a decline in the rate of unemployment. b. a prolonged period of high unemployment and output substantially below its potential. c. a large decline in the stock market followed by a steady recovery. d. a failure of expansionary monetary policy to stimulate output and employment.
Exhibit 15-3 Potatoes and wheat output (tons per day) CountryPotatoes Wheat United States4 2 Ireland3 1 If each nation in Exhibit 15-3 specializes in producing the good for which it has a comparative advantage, then:
A. Ireland would produce neither potatoes or wheat. B. the United States would produce both potatoes and wheat. C. the United States would produce potatoes. D. Ireland would produce potatoes.