Multiple Choice
Figure 14.3 
-In Figure 14.3,if the economy is at point L,what will happen?
A) Inventories have fallen below their desired level, and firms decrease production.
B) Inventories have fallen below their desired level, and firms increase production.
C) Inventories have risen above their desired level, and firms decrease production.
D) Inventories have risen above their desired level, and firms increase production.
Correct Answer:
Verified
Related Questions
Q102: The dynamic aggregate demand and aggregate supply
Q119: After an unexpected increase in the price
Q121: Technological change can reduce the inflationary effects
Q125: Use the dynamic aggregate demand and aggregate