If an economy is producing a level of output which is lower than the equilibrium level, planned expenditures ________ total output and ________ goods and services are being produced than are being demanded.
A) exceed; more
B) exceed; fewer
C) are less than; more
D) are less than; fewer

Question

Quizplus · Accepted Answer

When an economy is producing below the equilibrium level, planned expenditures exceed total output, meaning fewer goods and services are being produced than are being demanded.

If an Economy Is Producing a Level of Output Which