-The figure shows Tropical Isle's aggregate planned expenditure curve. When aggregate planned expenditure is $2 trillion, aggregate planned expenditure is than real GDP, firms' inventories , and firms their production.
A) less; decrease; increase
B) greater; increase; decrease
C) less; increase; decrease
D) greater; decrease; increase

Question

-The figure shows Tropical Isle's aggregate planned expenditure curve. When aggregate planned expenditure is $2 trillion, aggregate planned expenditure is than real GDP, firms' inventories , and firms their production.
A) less; decrease; increase 
B) greater; increase; decrease 
C) less; increase; decrease 
D) greater; decrease; increase

Quizplus · Accepted Answer

When aggregate planned expenditure is greater than real GDP, firms' inventories decrease because they are selling more than they are producing, leading them to increase their production to meet the higher demand.

-The Figure Shows Tropical Isle's Aggregate Planned Expenditure Curve