The Figure Given Below Shows the Aggregate Expenditure Curve of an Open

question 72

Multiple Choice

The figure given below shows the aggregate expenditure curve of an open economy. Figure 10.1 In the figure:
C₁: Consumption
I₁: Investment
G₁: Government spending
X₁: Net Exports
According to Figure 10.1, when real GDP is at G:

• A)there is pressure for the economy to expand.
• B)there are unplanned reductions in inventory.
• C)aggregate expenditures are less than real GDP.
• D)the economy has achieved macroeconomic equilibrium.
• E)there is pressure for the economy to contract.