-The data in the above table indicate that when the price level is 120
A) firms have unexpectedly low inventories, so prices will rise.
B) inventories are at levels planned by firms.
C) firms will plan to increase the level of output.
D) firms have unexpectedly high inventories, so prices fall.

Question

-The data in the above table indicate that when the price level is 120
A) firms have unexpectedly low inventories, so prices will rise. 
B) inventories are at levels planned by firms. 
C) firms will plan to increase the level of output. 
D) firms have unexpectedly high inventories, so prices fall.

Quizplus · Accepted Answer

When the price level is 120, firms have unexpectedly high inventories, indicating that demand is lower than expected, leading to a potential decrease in prices to clear excess inventory.

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