Actual Expenditure, Planned Expenditure and Real GDP
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.