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.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 8SQ

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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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