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. Unplanned inventories decrease and output increases when aggregate output is
A)

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. Unplanned inventories decrease and output increases when aggregate output is
A) < $1,000 million. 
B) $1,000 million. 
C) $1,160 million. 
D) $1,200 million.

Quizplus · Accepted Answer

When aggregate output is less than the equilibrium level, which is typically at $1,000 million, unplanned inventories decrease because demand exceeds supply, prompting firms to increase output.

Refer to the Information Provided in Figure 23