Refer to Figure 9.1 for the following questions.
Figure 9.1

-In Figure 9.1, if the economy is at a level of aggregate expenditure given by point K:
A)the economy is in equilibrium.
B)production is greater than spending.
C)production is less than spending.
D)inventories will increase above their desired level.

Question

Refer to Figure 9.1 for the following questions.
Figure 9.1
 
-In Figure 9.1, if the economy is at a level of aggregate expenditure given by point K:
A)the economy is in equilibrium. 
B)production is greater than spending. 
C)production is less than spending. 
D)inventories will increase above their desired level.

Quizplus · Accepted Answer

Point K represents the intersection of aggregate expenditure and aggregate output. This means that production and spending are equal, and the economy is in equilibrium.

Refer to Figure 9.1 for the Following Questions