In the above figure, if the level of real GDP is $11 trillion,
A) inventories are below the levels planned by firms.
B) inventories are equal to the levels planned by firms.
C) inventories are above the levels planned by firms.
D) planned expenditures are zero.

Question

Quizplus · Accepted Answer

When real GDP is $11 trillion, if inventories are below the levels planned by firms, it indicates that actual sales are higher than expected, leading to a reduction in inventory levels.

In the Above Figure, If the Level of Real GDP