When aggregate planned expenditure is less than real GDP, unplanned
A) consumption expenditure occurs.
B) exports are made.
C) investment occurs.
D) government expenditures are made.

Question

Quizplus · Accepted Answer

When aggregate planned expenditure is less than real GDP, it means that not all goods and services produced are being purchased. This results in unplanned investment, as businesses accumulate unsold inventory.

When Aggregate Planned Expenditure Is Less Than Real GDP, Unplanned