Use the figure below to answer the following questions. Figure 11.2.1 There are no exports or imports in this economy. -Refer to Figure 11.2.1.When real GDP is equal to Y_b, then A)real GDP increases. B)real GDP decreases. C)actual expenditure is less than planned expenditure. D)actual expenditure is greater than planned expenditure. E)planned expenditure is equal to actual expenditure.

Question

Quizplus · Accepted Answer

When real GDP is equal to Y_b, it means that the aggregate expenditure planned by the households, firms, and government is equal to the actual aggregate expenditure in the economy. Therefore, planned expenditure is equal to actual expenditure.

Use the Figure Below to Answer the Following Questions