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

Question

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

Quizplus · Accepted Answer

When real GDP is $13 trillion, if inventories are above the levels planned by firms, it indicates that actual production exceeded planned spending, leading to an accumulation of unsold goods.

-In the Above Figure, If the Level of Real GDP