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Figure 13-6 -Refer to Figure 13-6. Let Y = Real GDP, AE

Question 194

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Figure 13-6 Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. If real GDP produced is $4,000, A) consumers and firms would demand more than was produced. B) the economy experiences an inflationary gap. C) firms will experience unplanned inventories accumulation. D) the price level must rise to reduce aggregate expenditures and restore equilibrium.
-Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JIP = Planned Investment, G = Government Purchases. Further, IP and G are autonomous. If real GDP produced is $4,000,


A) consumers and firms would demand more than was produced.
B) the economy experiences an inflationary gap.
C) firms will experience unplanned inventories accumulation.
D) the price level must rise to reduce aggregate expenditures and restore equilibrium.

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