-In the above figure, at point d firms would find themselves with inventories their target level and so would production.
A) decreasing below; decrease
B) increasing above; increase
C) increasing above; decrease
D) decreasing below; increase

Question

-In the above figure, at point d firms would find themselves with inventories their target level and so would production.
A) decreasing below; decrease 
B) increasing above; increase 
C) increasing above; decrease 
D) decreasing below; increase

Quizplus · Accepted Answer

At point d, firms have inventories above their target level, leading them to decrease production to bring inventories back to the desired level.

-In the Above Figure, at Point D Firms Would Find