Figure 12-1 -Refer to Figure 12-1.If the Economy Is at a Level

Multiple Choice

Figure 12-1
-Refer to Figure 12-1.If the economy is at a level of aggregate expenditure given by point K,

A) the economy is in equilibrium.
B) production is greater than spending.
C) production is less than spending.
D) inventories will increase above their desired level.