-The above figure shows the AE curve and 45° line for an economy.
a. If real GDP equals $10 trillion, how do firms' inventories compare to their planned inventories?
b. If real GDP equals $20 trillion, how do firms' inventories compare to their planned inventories?
c. What is the equilibrium level of expenditure?
Why is this amount the equilibrium?

Question

-The above figure shows the AE curve and 45° line for an economy.
a. If real GDP equals $10 trillion, how do firms' inventories compare to their planned inventories?
b. If real GDP equals $20 trillion, how do firms' inventories compare to their planned inventories?
c. What is the equilibrium level of expenditure?
 Why is this amount the equilibrium?

Quizplus · Accepted Answer

The Answer of 
-The above figure shows the AE curve and 45° line for an economy.
a. If real GDP equals $10 trillion, how do firms' inventories compare to their planned inventories?
b. If real GDP equals $20 trillion, how do firms' inventories compare to their planned inventories?
c. What is the equilibrium level of expenditure?
 Why is this amount the equilibrium?

-The Above Figure Shows the AE Curve and 45° Line