-In the Above Figure, If the Level of Real GDP

question 342

Multiple Choice

-In the above figure, if the level of real GDP is $11 trillion,

• A) inventories are equal to the levels planned by firms.
• B) planned expenditures are zero.
• C) inventories are below the levels planned by firms.
• D) inventories are above the levels planned by firms.

---

Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity produced.

Total Revenue

The overall income obtained by an enterprise from its sales or services within a designated period.

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.

Total Revenue

The total amount of money a company receives from sales of its products or services, before any expenses are subtracted.