Figure 23-1
-Refer to Figure 23-1. At point L in the figure above, which of the following is true?
A) Aggregate expenditure is greater than GDP.
B) The economy has achieved macroeconomic equilibrium.
C) Actual inventories are greater than planned inventories.
D) GDP will be increasing.

Question

Figure 23-1 
-Refer to Figure 23-1. At point L in the figure above, which of the following is true?
A) Aggregate expenditure is greater than GDP. 
B) The economy has achieved macroeconomic equilibrium. 
C) Actual inventories are greater than planned inventories. 
D) GDP will be increasing.

Quizplus · Accepted Answer

At point L, actual inventories are greater than planned inventories, indicating that production has exceeded sales, leading to an accumulation of unsold goods.

Figure 23-1 -Refer to Figure 23-1. at Point L in the Figure