The following question are based on the following information:

-If actual GDP equals $1,980 billion
A) intended saving equals intended investment.
B) the economy is operating below its equilibrium level.
C) business inventories will increase by $60 billion.
D) producers will plan to increase production further still.
E) the C + I line lies above the 45-degree line.

Question

The following question are based on the following information:
 
-If actual GDP equals $1,980 billion
A) intended saving equals intended investment. 
B) the economy is operating below its equilibrium level. 
C) business inventories will increase by $60 billion. 
D) producers will plan to increase production further still. 
E) the C + I line lies above the 45-degree line.

Quizplus · Accepted Answer

If actual GDP is below the equilibrium level, unintended inventory accumulation occurs, indicating that business inventories will increase.

The Following Question Are Based on the Following Information