During 2015, a country reports aggregate planned expenditures of $5 trillion and an actual real GDP of $4 trillion.During 2015,
A) inventories are less than planned.
B) inventories are greater than planned.
C) inventories are unaffected.
D) actual aggregate expenditures are greater than real GDP.
E) actual aggregate expenditures are less than real GDP.

Question

Quizplus · Accepted Answer

When aggregate planned expenditures exceed actual real GDP, it indicates that businesses are selling more than they anticipated, leading to a reduction in inventories.

During 2015, a Country Reports Aggregate Planned Expenditures of $5