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    Exam 11: Consumption, Real GDP, and the Multiplier
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    When Real Gross Domestic Product (GDP)exceeds Total Planned Real Expenditures
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When Real Gross Domestic Product (GDP)exceeds Total Planned Real Expenditures

Question 49

Question 49

Multiple Choice

When real Gross Domestic Product (GDP) exceeds total planned real expenditures,


A) there will be unplanned decreases in inventories.
B) the circular flow will increase.
C) a lower level of equilibrium real Gross Domestic Product (GDP) will result.
D) a higher level of equilibrium real Gross Domestic Product (GDP) will prevail.

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