The figure given below shows the income-expenditure model. At point C, Figure 9.1 Aggregate expenditure (in billion dollars) C+I+G+(X-M) A B Real GDP (in billion dollars) a. producers experience an unexpected accumulation of inventory O b. consumption expenditure exceeds disposable income c. aggregate expenditure is exactly equal to real GDP d. real GDP exceeds aggregate expenditure O e. producers experience an unexpected loss of inventory

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 4.8P
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The figure given below shows the income-expenditure model. At point C,
Figure 9.1
Aggregate
expenditure
(in billion dollars)
C+I+G+(X-M)
A
B
Real GDP
(in billion
dollars)
a. producers experience an unexpected accumulation of inventory
O b. consumption expenditure exceeds disposable income
c. aggregate expenditure is exactly equal to real GDP
d. real GDP exceeds aggregate expenditure
e. producers experience an unexpected loss of inventory
Transcribed Image Text:The figure given below shows the income-expenditure model. At point C, Figure 9.1 Aggregate expenditure (in billion dollars) C+I+G+(X-M) A B Real GDP (in billion dollars) a. producers experience an unexpected accumulation of inventory O b. consumption expenditure exceeds disposable income c. aggregate expenditure is exactly equal to real GDP d. real GDP exceeds aggregate expenditure e. producers experience an unexpected loss of inventory
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