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Actual expenditure is of equal value to the real GDP, but the aggregate planned expenditure differs from the actual expenditure aggregate and similarly from the GDP. Are you wondering how this is possible? Well it is not uncommon to possess an inventory greater or smaller in value than planned. Hence while implantation of a variety of plans by private firms; the government or the people the planned expenditure are followed. This planned expenditure can be different from the actual aggregate expense. If aggregate planned expense is lower than real GDP sale is lesser than planned and if the real GDP is more than apprehended than sale is more. When real GDP is less than inventory is more and the real GDP is more than inventory ends up being lesser than apprehended.
Links of Previous Main Topic:-
- Definition of Economics
- Economic Problem
- Expenditure Multiplier Know the Keynesian Model
- Fixed Prices and Expenditure Plans
Links of Next Macroeconomics Topics:-
- Convergence to Equilibrium
- Multiplier
- The Basic Idea of the Multiplier
- The Multiplier Effect
- Why Is the Multiplier Greater Than 1
- The Size of the Multiplier
- Imports and Income Taxes
- The Multiplier Process
- Business Cycle Turning Points
- The Multiplier and the Price Level
- Adjusting Quantities and Prices
- Aggregate Expenditure and Aggregate Demand
- Deriving the Aggregate Demand Curve
- Changes in Aggregate Expenditure and Aggregate Demand
- Equilibrium Real GDP and the Price Level
- Expenditure Multiplier Know the Keynesian Model
