-Refer to the graph in the exhibit.Which of the following best describes the situation at point C?
A) Consumption expenditures exceed disposable income.
B) Real GDP exceeds aggregate expenditure.
C) Aggregate expenditure is exactly equal to real GDP.
D) Aggregate expenditure exceeds real GDP.

Question

-Refer to the graph in the exhibit.Which of the following best describes the situation at point C?  
A) Consumption expenditures exceed disposable income. 
B) Real GDP exceeds aggregate expenditure. 
C) Aggregate expenditure is exactly equal to real GDP. 
D) Aggregate expenditure exceeds real GDP.

Quizplus · Accepted Answer

At point C, aggregate expenditure exceeds real GDP, indicating that the economy is experiencing an increase in spending relative to its output.

-Refer to the Graph in the Exhibit