In the above figure, if the level of real GDP is $13 trillion,
A) planned expenditures are zero.
B) inventories are equal to the levels planned by firms.
C) inventories are below the levels planned by firms.
D) inventories are above the levels planned by firms.

Question

Quizplus · Accepted Answer

When real GDP is $13 trillion and planned expenditures are less than this amount, it indicates that firms are producing more than what is being consumed or purchased, leading to an accumulation of inventories above the levels planned by firms.

In the Above Figure, If the Level of Real GDP