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Explain the relationships between real GDP, aggregate planned expenditure, induced expend

 Explain the relationships between real GDP, aggregate planned expenditure, induced expenditure, and unplanned investment.

 

 

18) At the equilibrium level of aggregate expenditure, what does aggregate planned expenditure equal? What happens at other levels of real GDP to bring about an equilibrium?

 

19) "If aggregate planned expenditure exceeds real GDP, then real GDP will increase." Explain whether the previous sentence is correct or incorrect.

 

 

20) What is unplanned investment? How does it occur?

 

 

21) If real GDP exceeds aggregate planned expenditure, what happens to firm's unplanned inventories?

Dec 07 2019 View more View Less

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