If planned expenditures equal $19 trillion when real GDP is $19.5 trillion, then
A) inventories will decrease by $0.5 trillion.
B) actual investment will exceed planned investment.
C) there will be excess demand for most goods.
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 will exceed planned investment because unsold goods will lead to an increase in inventories.

If Planned Expenditures Equal $19 Trillion When Real GDP Is