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

Question 209

Multiple Choice

 Price  level  A ggregate  demand  (trillions of  2005 dollars)   Short-run  aggregate  supply  (trillions of  2005 dollars)   Long-run  aggregate  supply  (trillions of  2005 dollars)  1308121012091110110101010100119109012810\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 130 & 8 & 12 & 10 \\\hline 120 & 9 & 11 & 10 \\\hline 110 & 10 & 10 & 10 \\\hline 100 & 11 & 9 & 10 \\\hline 90 & 12 & 8 & 10 \\\hline\end{array}
-The data in the above table indicate that when the price level is 100,


A) inventories fall and the price level rises.
B) inventories rise and the price level falls.
C) the economy is in a long-run macroeconomic equilibrium.
D) the unemployment rate is at its equilibrium level.

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