Use the following to answer questions . Exhibit: Aggregate Expenditures Curve Figure 13-6 -(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. If real GDP produced is $4,000, A) consumers and firms would demand more than was produced. B) the economy experiences an inflationary gap. C) firms will experience unplanned inventories accumulation. D) the price level must rise to reduce aggregate expenditures and restore equilibrium.

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If real GDP produced is $4,000, it is below the point where the Aggregate Expenditures Curve intersects with the 45-degree line, indicating that there is unplanned inventories accumulation for firms. This means that consumers and firms are demanding less than what is produced and there is no inflationary gap. The price level would not necessarily have to rise to restore equilibrium, as firms may adjust production levels to decrease inventories.

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