During the start of an expansion, aggregate planned expenditure
A) increases the magnitude of the expenditure multiplier.
B) decreases the magnitude of the expenditure multiplier.
C) exceeds real GDP.
D) is less than real GDP.
E) is slowly decreasing.

Question

Quizplus · Accepted Answer

During the start of an expansion, aggregate planned expenditure typically exceeds real GDP, as businesses and consumers increase their spending in anticipation of economic growth.

During the Start of an Expansion, Aggregate Planned Expenditure