Question: When aggregate planned expenditure exceeds real GDP, A. firms decrease production and real GDP decreases. B. firms increase production and real GDP increases. C. firms

When aggregate planned expenditure exceeds real GDP,

A.

firms decrease production and real GDP decreases.

B.

firms increase production and real GDP increases.

C.

firms decrease production and real GDP increases.

D.

firms increase production and real GDP decreases.

E.

firms do nothing because induced expenditure will increase so that the equilibrium is reached.

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