If Aggregate Planned Expenditure Is Less Than Real GDP Then

Multiple Choice

If aggregate planned expenditure is less than real GDP then

A) consumers increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
B) firms increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
C) firms' inventories will increase and real GDP will decrease as production falls.
D) firms' inventories will decrease and real GDP will decrease as production falls.