A higher level of real Gross Domestic Product (GDP) will result if
A) total planned real expenditures exceed real Gross Domestic Product (GDP).
B) aggregate supply exceeds aggregate demand.
C) aggregate demand exceeds aggregate supply.
D) leakage exceeds injections.

Question

Quizplus · Accepted Answer

When total planned real expenditures exceed real GDP, it indicates that there is more demand than the current level of production, leading to an increase in GDP as production is ramped up to meet the demand.

A Higher Level of Real Gross Domestic Product (GDP) Will