-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.If real GDP is equal to $900 billion,then
A)aggregate planned expenditure will need to decrease to reach the equilibrium.
B)aggregate planned expenditure is equal to real GDP.
C)aggregate planned expenditure is less than real GDP.
D)this is the equilibrium level of real GDP.
E)aggregate planned expenditure is greater than real GDP.

Question

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.If real GDP is equal to $900 billion,then
A)aggregate planned expenditure will need to decrease to reach the equilibrium. 
B)aggregate planned expenditure is equal to real GDP. 
C)aggregate planned expenditure is less than real GDP. 
D)this is the equilibrium level of real GDP. 
E)aggregate planned expenditure is greater than real GDP.

Quizplus · Accepted Answer

If real GDP is $900 billion and there are no imports or exports, aggregate planned expenditure being less than real GDP indicates that the economy is producing more than what is being planned to be spent, leading to an excess supply.

-The Above Table Gives Data for the Nation of South