aggregate planned expenditure and real GDP

student007 · #1 Feb 25, 2006, 09:19 AM

I learned in economics that the main reason why Aggreggate planned expenditure (APE) and real GDP are not always equal is because of inventories. This is entirely understandable. However, HOW they are related is a bit confusing. If APE exceeds real GDP, then they sell more than they produce. This confuses me. If they sell more than they expect, wouldn't real GDP exceed their APE?

tybrown · Apr 10, 2008, 06:28 PM

If aggregate planned expenditure exceeds real GDP, then

AITESAMUDDIN AH · Apr 14, 2008, 10:44 PM

what are the objectives of macroeconomis?



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