If planned expenditures equal $13 trillion when real GDP is $13.5 trillion, then
A) there will be excess demand for most goods.
B) actual investment will exceed planned investment.
C) inventories will decrease by $0.5 trillion.
D) the economy must have a trade surplus to sell the excess goods and services.

Question

Quizplus · Accepted Answer

When planned expenditures are less than real GDP, actual investment exceeds planned investment because unsold goods increase inventories.

If Planned Expenditures Equal $13 Trillion When Real GDP Is