Which of the following is not true?
A)When planned aggregate expenditure is greater than output,real GDP demanded will rise.
B)When planned aggregate expenditure is greater than output,real GDP demanded will fall.
C)When planned aggregate expenditure is increasing,disposable income and consumption are increasing.
D)When planned aggregate expenditure is increasing,consumption and saving are both increasing.
E)As long as planned aggregate expenditure is increasing,real GDP demanded does also.

Question

Quizplus · Accepted Answer

When planned aggregate expenditure is greater than output, it means that the total amount of goods and services demanded exceeds the total amount produced by the economy. In this case, businesses will increase their production to meet the higher demand, causing real GDP demanded to rise. Thus, statement B is not true.

Which of the Following Is Not True