When aggregate planned expenditure is less than real GDP, unplanned
A) consumption expenditure occurs.
B) investment occurs.
C) government expenditures are made.
D) exports are made.

Question

Quizplus · Accepted Answer

When aggregate planned expenditure is less than real GDP, it typically leads to unplanned inventory accumulation, which is categorized as unplanned investment. Businesses end up with more goods than they intended to sell, reflecting an investment in inventory they did not plan for.

When Aggregate Planned Expenditure Is Less Than Real GDP, Unplanned