Multiple Choice
-Use the figure above to answer this question. At a price level of of 90,
A) the aggregate quantity demanded exceeds real GDP and inventories will decrease.
B) inventories increase and firms will increase production.
C) the aggregate quantity demanded exceeds real GDP, inventories increase and the price level will rise.
D) people will be forced to cut consumption so that aggregate demand will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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