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Figure 12.2 -Consider the Economy Described in Figure 12.2. at Point C

Question 71

Multiple Choice

Figure 12.2
Figure 12.2 -Consider the economy described in Figure 12.2. At point C, A) businesses produce more than consumers want to spend. B) inventories deplete, which pushes the price up to its new equilibrium. C) inventories accumulate, which pushes the price down to its new equilibrium. D) real GDP is below its equilibrium level. E) the economy is in equilibrium.
-Consider the economy described in Figure 12.2. At point C,

A) businesses produce more than consumers want to spend.
B) inventories deplete, which pushes the price up to its new equilibrium.
C) inventories accumulate, which pushes the price down to its new equilibrium.
D) real GDP is below its equilibrium level.
E) the economy is in equilibrium.

Correct Answer: