Assuming Inflexible Prices, If the Demand for Many Goods and Services

Multiple Choice

Assuming inflexible prices, if the demand for many goods and services falls across the entire economy and for an extended period of time:

A) many firms will face a constant reduction in their inventories.
B) many firms will face with an inventory pile up and will be forced to cut production.
C) many firms will face with an inventory pile up and will be forced to hire more workers.
D) many firms will face a constant reduction in their inventories and will be forced to hire more workers.