Suppose the Economy Is at an Equilibrium When C

Multiple Choice

Suppose the economy is at an equilibrium when C + I + G + X = $12 trillion. If the economy is currently at a real national income level of $14 trillion, then total planned real expenditures

A) exceed real Gross Domestic Product (GDP) , and real Gross Domestic Product (GDP) will increase.
B) are less than real Gross Domestic Product (GDP) , and real Gross Domestic Product (GDP) will decline.
C) are equal to real Gross Domestic Product (GDP) , and there will be no change in real Gross Domestic Product (GDP) .
D) are less than real Gross Domestic Product (GDP) , and real Gross Domestic Product (GDP) will increase.