If firms are producing an output greater than planned expenditures, these firms will cut back on production, which decreases GDP.

Name: If firms are producing an output greater than planned expenditures, these firms will cut back on production, which decreases GDP.
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If firms are producing an output greater than planned expenditures, it means there is excess supply in the market. In response, firms may cut back on production to avoid accumulating unsold inventory, which would decrease GDP.

If Firms Are Producing an Output Greater Than Planned Expenditures