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Use the diagram below to answer the following question: Real aggregate expenditure, AE Y = AE AE L K 450 0 Real GDP, Y If

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Use the diagram below to answer the following question: Real aggregate expenditure, AE Y = AE AE L K 450 0 Real GDP, Y If the economy is at point L, what will happen? O a. Inventories have risen above their desired level and firms increase production. O b. Inventories have risen above their desired level and firms decrease production. O c. Inventories have fallen below their desired level and firms decrease production. O d. Inventories have fallen below their desired level and firms increase production

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