When real GDP exceeds aggregate planned expenditure,
A. actual inventories decrease below their target.
B. the circular flow will increase.
C. GDP will decrease.
D. a higher level of equilibrium income will prevail.
Answer:C
When real GDP exceeds aggregate planned expenditure,
A. actual inventories decrease below their target. B. the circular flow will increase. C. GDP will decrease. D. a higher level of equilibrium income will prevail.