Equilibrium real gdp occurs where c + ig = gdp in a private closed economy because at this level of output, production creates sufficient total spending to purchase that output. at this level of output, consumption creates sufficient total spending to purchase that spending level. this is where gdp equals the value of production. this is where gdp equals the value of income. b. if c + ig exceeds gdp, the economy will draw down inventories faster than planned, ordering will slow, and real gdp will fall. draw down inventories faster than planned, ordering will increase, and real gdp will rise. accumulate unplanned inventories, ordering will increase, and real gdp will rise. accumulate unplanned inventories, ordering will slow, and real gdp will fall. c. the two expenditure components of real gdp purposely excluded in a private closed economy are the government sector and investment. saving and investment. net exports and the government sector. investment and net exports.