If aggregate planned expenditure is less than real GDP,
A. real GDP will increase.
B. real GDP remain unchanged.
C. real GDP will either decrease or increase, depending on the MPC.
D. inventories will increase above their target level and real GDP will decrease.
Answer:D
If aggregate planned expenditure is less than real GDP,
A. real GDP will increase. B. real GDP remain unchanged. C. real GDP will either decrease or increase, depending on the MPC. D. inventories will increase above their target level and real GDP will decrease.