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Question 121

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Answer the questions below:
(A) Suppose a firm finds that its inventary is rising. What does this inply about the level of 5pending as compared to the level of autput?
(B) Is the firm likely to cantinue producing at the sane level?
(C) Exalain why inventary changes far the whole economy aremonitared as a sign af future econamic activity.

Correct Answer:

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(A) If inventaries are risine spenting b...

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