If business inventories decrease below desired levels,then it is most likely that a
A)Higher level of unemployment will result.
B)Lower level of output will occur.
C)Higher price level will occur.
D)Recessionary gap will occur.

Question

Quizplus · Accepted Answer

When business inventories decrease below desired levels, it typically indicates that demand is outpacing supply. This can lead to higher prices as businesses adjust to the increased demand relative to their available inventory.

If Business Inventories Decrease Below Desired Levels,then It Is Most