Refer to the information provided in Figure 23.10 below to answer the question(s) that follow. Figure 23.10
-Refer to Figure 23.10. At aggregate output levels below $1,000 million, there are
A) unplanned decreases in inventories and output increases.
B) unplanned increases in inventories and output increases.
C) unplanned increases in inventories and output decreases.
D) unplanned decreases in inventories and output decreases.

Question

Refer to the information provided in Figure 23.10 below to answer the question(s) that follow.  Figure 23.10
-Refer to Figure 23.10. At aggregate output levels below $1,000 million, there are
A) unplanned decreases in inventories and output increases. 
B) unplanned increases in inventories and output increases. 
C) unplanned increases in inventories and output decreases. 
D) unplanned decreases in inventories and output decreases.

Quizplus · Accepted Answer

At aggregate output levels below $1,000 million, demand exceeds supply, leading to unplanned decreases in inventories as firms sell more than they produce, prompting them to increase output.

Refer to the Information Provided in Figure 23