Use the Figure Below to Answer the Following Questions

question 40

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.2.2
The economy depicted does not engage in international trade and has no government.Planned aggregate expenditure AE) is equal to the sum of consumption expenditure C) and investment I) .
-If there is an unplanned decrease in inventories, aggregate planned expenditure is

• A)less than real GDP, and firms increase production.
• B)greater than real GDP, and firms decrease production.
• C)greater than real GDP, and firms increase production.
• D)less than real GDP, and firms decrease production.
• E)greater than real GDP, and firms increase investment.

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