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

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
-Consider the economy described in Figure 10.1. Which of the following is true if the real GDP is equal to 0H?

A) Aggregate expenditures are greater than total income.
B) All economic resources are being used efficiently.
C) Households are dissaving an amount equal to DC.
D) Businesses accumulate unwanted inventories.
E) Unplanned investment will decline.

Correct Answer:

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