If the Level of Real GDP Is $4 Trillion While

Multiple Choice

If the level of real GDP is $4 trillion while aggregate planned expenditure is $5 trillion, then

A) aggregate planned expenditure decreases to reach the equilibrium of $4 trillion.
B) inventories rise more than planned, leading firms to cut production.
C) inventories fall more than planned, leading firms to increase production.
D) real GDP increases and planned expenditure decreases reaching equilibrium in the middle.
E) inventories rise more than planned, leading firms to increase production.