-In the above figure, if the level of real GDP is $17 trillion
A) inventories are above the levels planned by firms.
B) inventories are below the levels planned by firms.
C) inventories are equal to the levels planned by firms.
D) planned expenditures are zero.

Question

-In the above figure, if the level of real GDP is $17 trillion
A) inventories are above the levels planned by firms. 
B) inventories are below the levels planned by firms. 
C) inventories are equal to the levels planned by firms. 
D) planned expenditures are zero.

Quizplus · Accepted Answer

When real GDP is higher than planned expenditures, it indicates that firms have produced more than what was sold, leading to an unplanned increase in inventories.

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