If planned spending exceeds planned output in an economy,the result is a(n)_____.
A)increase in inventories
B)decrease in gross domestic product
C)decrease in imports
D)increase in government purchases
E)unintended decrease in inventories

Question

Quizplus · Accepted Answer

When planned spending exceeds planned output, businesses sell more than they anticipated, leading to an unintended decrease in inventories as they have not produced enough goods to meet the unexpected higher demand.

If Planned Spending Exceeds Planned Output in an Economy,the Result