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.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8e83805-d671-4409-b4ec-cbece8c7ff61%2F747f506c-87dc-42c0-aeef-140aa4ac1913%2F82msow_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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