Solved

-Use the Figure Above to Answer This Question

Question 4

Multiple Choice

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


A) people will be forced to cut consumption so that aggregate demand will decrease.
B) the aggregate quantity demanded exceeds real GDP and inventories will decrease.
C) inventories increase and firms will increase production.
D) the aggregate quantity demanded exceeds real GDP, inventories increase and the price level will rise.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q2: In the first half of 2008, food

Q3: An aggregate supply curve depicts the relationship

Q5: In a change to immigration policy during

Q6: If the economy is in long run

Q7: Which of the following is TRUE about

Q8: The U.S. aggregate demand curve shifts leftward

Q9: In a short-run macroeconomic equilibrium, real GDP

Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q11: In the first half of 2008, food