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

question 216

Multiple Choice

-In the above figure, if the level of real GDP is $15 trillion

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

---

Definitions:

Disposable Income

Fiscal resources for households' utilization in spending and saving post income tax processing.

Consumption

The employment of goods and services by domestic units.

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use or for investment.

Disposable Income

The financial resources available to a household for saving and spending after subtracting income taxes.