Use the Figure Below to Answer the Following Questions

question 19

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.2.1
There are no exports or imports in this economy.
-Refer to Figure 11.2.1.When real GDP is equal to Y_c, then

• A)real GDP increases.
• B)actual expenditure is less than planned expenditure.
• C)actual expenditure is greater than planned expenditure.
• D)planned expenditure is equal to actual expenditure.
• E)the economy is in equilibrium.

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Definitions:

Income Summary

An account to which all revenue and expense accounts are transferred at the end of an accounting period to summarize the results of operations for that period.

Normal balance

The side of an account (debit or credit) where increases in the account are recorded, depending on the account type.

Inventory balance

The total value of all goods and materials held by a company intended for sale or production.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.