Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6
-(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Further, I_P 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.