During the start of an expansion, aggregate planned expenditure
A) is slowly decreasing.
B) increases the magnitude of the expenditure multiplier.
C) decreases the magnitude of the expenditure multiplier.
D) exceeds real GDP.
E) is less than real GDP.

Question

Quizplus · Accepted Answer

During the start of an expansion, aggregate planned expenditure exceeds real GDP, which indicates that the economy is in a phase where spending is ramping up, leading to increased production and potentially to economic growth.

During the Start of an Expansion, Aggregate Planned Expenditure