In the aggregate expenditures model, if an economy operates below equilibrium GDP, there will be unplanned inventory depletion

On the 45-degree line diagram, for points that lie above the 45-degree line

A) planned aggregate expenditure is less than GDP. B) planned aggregate expenditure is greater than GDP. C) planned aggregate expenditure is equal to GDP. D) planned aggregate expenditure is less than aggregate income.

The interest rate effect helps explain why a lower price level will reduce the quantity of real goods and services demanded as an economy moves down along its aggregate demand curve

a. True b. False Indicate whether the statement is true or false