Use the following figure to answer the questions : Figure9.8

-In response to changing inventories in Figure 9.8,if the economy produces at full employment of $400 billion,firms will attempt to
A)Lower production rates and hire more workers.
B)Lower production rates and lay off workers.
C)Raise production rates and hire more workers.
D)Raise production rates and lay off workers.

Question

Use the following figure to  answer the questions : Figure9.8

-In response to changing inventories in Figure 9.8,if the economy produces at full employment of $400 billion,firms will attempt to
A)Lower production rates and hire more workers. 
B)Lower production rates and lay off workers. 
C)Raise production rates and hire more workers. 
D)Raise production rates and lay off workers.

Quizplus · Accepted Answer

When the economy is at full employment and inventories are changing, firms will likely lower production rates and lay off workers to adjust to the reduced demand and avoid overproduction.

Use the Following Figure to Answer the Questions