-The data in the above table indicate that when the price level is 120
A) inventories fall and the price level rises.
B) the economy is in a long-run macroeconomic equilibrium.
C) inventories rise and the price level falls.
D) the unemployment rate is at its equilibrium level.

Question

-The data in the above table indicate that when the price level is 120
A) inventories fall and the price level rises. 
B) the economy is in a long-run macroeconomic equilibrium. 
C) inventories rise and the price level falls. 
D) the unemployment rate is at its equilibrium level.

Quizplus · Accepted Answer

Inventories rise when the price level falls, and vice versa.

-The Data in the Above Table Indicate That When the Price