-The data in the above table indicate that when the price level is 100,
A) inventories fall and the price level rises.
B) the unemployment rate is at its equilibrium level.
C) the economy is in a long- run macroeconomic equilibrium.
D) inventories rise and the price level falls.

Question

-The data in the above table indicate that when the price level is 100,
A) inventories fall and the price level rises. 
B) the unemployment rate is at its equilibrium level. 
C) the economy is in a long- run macroeconomic equilibrium. 
D) inventories rise and the price level falls.

Quizplus · Accepted Answer

When the price level is 100, if inventories fall, it indicates that demand exceeds supply, leading to upward pressure on prices, causing the price level to rise.

-The Data in the Above Table Indicate That When the Price