If, at some level of output, total planned real expenditures are greater than real Gross Domestic Product (GDP)
A) real GDP will fall.
B) real GDP remains unchanged.
C) real GDP will either fall or remain unchanged, depending on the MPC.
D) unplanned inventories will decrease.

Question

Quizplus · Accepted Answer

When total planned real expenditures exceed real GDP, it indicates that consumers and businesses are spending more than the economy is producing, leading to a decrease in unplanned inventories as goods are bought faster than they are produced.

If, at Some Level of Output, Total Planned Real Expenditures