Asked by Tyler Thompson on Jun 10, 2024
Verified
If planned spending exceeds planned output in an economy,the result is a(n) _____.
A) increase in inventories
B) decrease in gross domestic product
C) decrease in imports
D) increase in government purchases
E) unintended decrease in inventories
Planned Spending
Planned or budgeted expenditures by individuals, companies, or governments anticipated over a certain period.
Planned Output
The expected or targeted level of production set by a company or economy, often based on demand forecasts and capacity planning.
Inventories
The total amount of goods and materials held by a company or business in anticipation of sale or completion.
- Interpret the effects of changes in aggregate expenditure components on GDP.
Verified Answer
Learning Objectives
- Interpret the effects of changes in aggregate expenditure components on GDP.
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