Real GDP is $13 trillion and aggregate planned expenditure is $14 trillion.As a result,unplanned inventory change is ________ and real GDP ________.
A)negative;decreases
B)negative;does not change
C)positive;increases
D)positive;decreases
E)negative;increases

Question

Quizplus · Accepted Answer

When aggregate planned expenditure exceeds real GDP, it indicates that demand is higher than production, leading to a decrease in inventories (negative unplanned inventory change). This typically results in an increase in real GDP as production ramps up to meet the higher demand.

Real GDP Is $13 Trillion and Aggregate Planned Expenditure Is