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

Question

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

Quizplus · Accepted Answer

If real GDP is $11 trillion and planned expenditures are less than this amount, it implies that firms are selling less than they expected, leading to inventories being below the levels planned by firms.

-In the Above Figure, If the Level of Real GDP