Which of the Following Statements Is True About Equilibrium in the Aggregate

Multiple Choice

Which of the following statements is true about equilibrium in the aggregate expenditures model?
I. Equilibrium is found at the level of real GDP at which the aggregate expenditures curve crosses the 45-degree line.
II. In equilibrium, real GDP produced equals aggregate expenditures.
III. In equilibrium, inventories equal zero.
IV. In equilibrium, real GDP produced equals potential real GDP.

A) I only
B) I and II only
C) I, II, and III only
D) I, II, III, and IV