Figure 13-5 -Which of the Following Statements Is True About Equilibrium in True

Multiple Choice

Figure 13-5

-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 equals 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, and IV only