"Few if any economists anticipated the extent of the inventory adjustment... Production cutbacks have been much greater than expected. Those cuts have weakened the industrial sector considerably. " As a result of these changes, the U.S. government lowered its estimate of
Fourth- quarter growth in real GDP.
HYPERLINK "http://www.businessweek.com/" www.businessweek.com 3/12/20
The article suggests that _ .

Question

Quizplus · Accepted Answer

The article discusses a situation where production cutbacks have weakened the industrial sector, resulting in the U.S. government lowering its estimate of fourth-quarter growth in real GDP. This suggests that actual real GDP is lower than planned expenditures, meaning real GDP fell short of planned expenditures. Therefore, option D is the correct answer. The article does not mention anything about shifts in either the AD or AE curve.

"Few If Any Economists Anticipated the Extent of the Inventory