-The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms decrease production because inventories exceed their target levels.
B) firms increase production because inventories exceed their target levels.
C) firms increase production because inventories are less than their target levels.
D) the economy has reached equilibrium and no change in production will occur.
E) We need more information to determine whether firms increase, decrease or do not change their production.

Question

-The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms decrease production because inventories exceed their target levels. 
B) firms increase production because inventories exceed their target levels. 
C) firms increase production because inventories are less than their target levels. 
D) the economy has reached equilibrium and no change in production will occur. 
E) We need more information to determine whether firms increase, decrease or do not change their production.

Quizplus · Accepted Answer

Firms increase production because inventories are less than their target levels.

-The Table Above Gives Data for the Nation of Mosh