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

Question 72

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The figure given below shows the aggregate expenditure curve of an open economy. Figure 10.1 The figure given below shows the aggregate expenditure curve of an open economy. Figure 10.1 In the figure: C<sub>1</sub>: Consumption I<sub>1</sub>: Investment G<sub>1</sub>: Government spending X<sub>1</sub>: 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. 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.

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