What is the result if planned spending exceeds planned output?
A) unintended inventory increases
B) a reduction in GDP
C) a decrease in imports
D) unintended inventory reductions

Question

What is the result if planned spending exceeds planned output?  
A) unintended inventory increases 
B) a reduction in GDP 
C) a decrease in imports 
D) unintended inventory reductions

Quizplus · Accepted Answer

If planned spending exceeds planned output, it means that goods and services are being produced at a slower pace than their demand. This results in unintended inventory reductions, as businesses will have to sell their existing inventory to meet the demand.

What Is the Result If Planned Spending Exceeds Planned Output