When output exceeds planned expenditures, there is insufficient production in the economy.

Question

Quizplus · Accepted Answer

This statement is incorrect. When output exceeds planned expenditures, it means that the economy is producing more than is being demanded, which can lead to a surplus of goods and/or services. The opposite scenario, where planned expenditures exceed output, would indicate that there is insufficient production in the economy to meet demand.

When Output Exceeds Planned Expenditures, There Is Insufficient Production in the Economy