Question 1
Figure 12-1

Refer to Figure 12-1. According to the figure above, at what point is aggregate expenditure greater than GDP?
◦
J◦
K◦
L◦ None of these
Question 2
Figure 12-1

Refer to Figure 12-1. At point L in the figure above, which of the following is true?
◦ Aggregate expenditure is greater than GDP.
◦ The economy has achieved macroeconomic equilibrium.
◦ Actual inventories are greater than planned inventories.
◦ GDP will be increasing.