True or false. if spending exceeds output, real gdp will decline as firms cut back on production.

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asked Apr 24, 2024 89.5k views

1 Answer

Belek · Answer 1 · 2024-04-28T09:47:05+0000

Answer: false

Explanation: When spending exceeds output, it means that the economy is not in equilibrium. Real GDP will increase because firms expand their output to reach an equilibrium state where spending is equal to output.

True or false. if spending exceeds output, real gdp will decline as firms cut back on production.

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