The figure given below shows the income-expenditure model. At point C, _____.

A) consumption expenditure exceeds disposable income
B) producers experience an unexpected loss of inventory
C) aggregate expenditure is exactly equal to real GDP
D) real GDP exceeds aggregate expenditure
E) producers experience an unexpected accumulation of inventory

Question

The figure given below shows the income-expenditure model. At point C, _____.

A) consumption expenditure exceeds disposable income 
B) producers experience an unexpected loss of inventory 
C) aggregate expenditure is exactly equal to real GDP 
D) real GDP exceeds aggregate expenditure 
E) producers experience an unexpected accumulation of inventory

Quizplus · Accepted Answer

The Answer of The figure given below shows the income-expenditure model. At point C, _____.

A) consumption expenditure exceeds disposable income 
B) producers experience an unexpected loss of inventory 
C) aggregate expenditure is exactly equal to real GDP 
D) real GDP exceeds aggregate expenditure 
E) producers experience an unexpected accumulation of inventory

The Figure Given Below Shows the Income-Expenditure Model