Whenever real GDP exceeds planned aggregate spending: households decrease consumption, decreasing disposable income. firms increase production, increasing real GDP. firms reduce produt tion, reducing real GDP. Ohouseholds increase consumption, increasing disposable income.

Whenever real GDP exceeds planned aggregate spending: households decrease consumption, decreasing disposable income. firms increase production, increasing real GDP. firms reduce produt tion, reducing real GDP. Ohouseholds increase consumption, increasing disposable income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Whenever real GDP exceeds planned aggregate spending:
households decrease consumption, decreasing disposable income.
firms increase production, increasing real GDP.
firms reduce produttion, reducing real GDP.
households increase consumption, increasing disposable income.

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