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Expenditures and GDP

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Can you tell me which statement is corrrect (if any) and why?

1. Actual aggregate expenditures does not always equal real GDP.

2. Planned investment exceeds actual investment when real GDP is greater than aggregate planned expenditures.

3. Actual investment exceeds planned investment when real GDP is less than aggregate planned expenditures.

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Solution Summary

Expenditures and GDP are correlated.

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