Suppose the Equilibrium Level of Expenditure Is $1,200

Multiple Choice

Suppose the equilibrium level of expenditure is $1,200. If real GDP is $1,400, then planned expenditures

A) are equal to real GDP, and there will be no change in real GDP.
B) are less than real GDP, and real GDP will increase.
C) exceed real GDP, and real GDP will increase.
D) are less than real GDP, and real GDP will decrease.