Which of the following does NOT occur when the economy is operating at the equilibrium level of GDP?
A) Total planned expenditures equal real GDP.
B) Real GDP tends to rise over time.
C) Planned investment equals actual investment.
D) Inventory investment equals zero.

Question

Quizplus · Accepted Answer

When the economy is operating at the equilibrium level of GDP, total planned expenditures equal real GDP, planned investment equals actual investment, and inventory investment is equal to zero. However, there is no guarantee that real GDP will tend to rise over time when the economy is at equilibrium because it depends on various factors such as productivity growth, technological advancement, and population growth.

Which of the Following Does NOT Occur When the Economy