-Consider the above figure. At a price level of 150
A) total planned production exceeds total planned real expenditures.
B) total planned real expenditures exceed total planned real production.
C) inventories of unsold goods decline.
D) the price level would rise.

Question

-Consider the above figure. At a price level of 150
A) total planned production exceeds total planned real expenditures. 
B) total planned real expenditures exceed total planned real production. 
C) inventories of unsold goods decline. 
D) the price level would rise.

Quizplus · Accepted Answer

At a price level of 150, total planned production exceeds total planned real expenditures, leading to an accumulation of unsold goods, which is indicative of a surplus in the market.

-Consider the Above Figure