-Refer to Exhibit 10-6.If total production (TP)is greater than total expenditures (TE),the economy is currently producing a level of Real GDP that is A) equal to or lower than Q₃. B) equal to or greater than Q₃. C) less than Q₂. D) between Q₂ and Q₁. E) greater than Q₃.

Question

Quizplus · Accepted Answer

If total production (TP) is greater than total expenditures (TE), it indicates that the economy is producing more goods and services than are being purchased, which suggests that the level of Real GDP is greater than the equilibrium level, hence option E is correct.