If aggregate planned expenditure exceeds real GDP,
A. firms are not maximizing their profits.
B. planned investment is greater than planned savings.
C. actual inventories decrease below their target.
D. planned consumption expenditure is less than actual consumption expenditure.
Answer:C
If aggregate planned expenditure exceeds real GDP,
A. firms are not maximizing their profits. B. planned investment is greater than planned savings. C. actual inventories decrease below their target. D. planned consumption expenditure is less than actual consumption expenditure.