Figure 23-1
-Refer to Figure 23-1. What will happen next when the economy is at point J?
A) Inventories have fallen below their desired level, and firms decrease production.
B) Inventories have fallen below their desired level, and firms increase production.
C) Inventories have risen above their desired level, and firms decrease production.
D) Inventories have risen above their desired level, and firms increase production.

Question

Figure 23-1 
-Refer to Figure 23-1. What will happen next when the economy is at point J?
A) Inventories have fallen below their desired level, and firms decrease production. 
B) Inventories have fallen below their desired level, and firms increase production. 
C) Inventories have risen above their desired level, and firms decrease production. 
D) Inventories have risen above their desired level, and firms increase production.

Quizplus · Accepted Answer

When the economy is at point J, inventories have fallen below their desired level, prompting firms to increase production to replenish their inventories.

Figure 23-1 -Refer to Figure 23-1. What Will Happen Next When the Next