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If aggregate planned expenditures are less than real GDP then

vellojo

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If aggregate planned expenditures are less than real GDP then

If aggregate planned expenditures are less than real GDP then
A) the economy remains in disequilibrium until aggregate planned expenditures increase to the level of real GDP.
B) firms' inventories will increase and real GDP will decrease as production falls.
C) firms must increase their planned expenditures until aggregate planned expenditures increase to the level of real GDP.
D) firms' inventories will decrease and real GDP will decrease as production falls.

Textbook

Foundations of Macroeconomics

Edition: 8^th

Authors: Bade, Parkin

Read 135 times

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Studying economics @ Edinburgh U

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vellojo Author

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Checks out after I submitted my assignment Smiling Face with Open Mouth

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Studying economics @ Edinburgh U

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