Figure 12.2 -Consider the Economy Described in Figure 12.2. at Point C

Multiple Choice

Figure 12.2

-Consider the economy described in Figure 12.2. At point C,

A) businesses produce more than consumers want to spend.
B) inventories deplete, which pushes the price up to its new equilibrium.
C) inventories accumulate, which pushes the price down to its new equilibrium.
D) real GDP is below its equilibrium level.
E) the economy is in equilibrium.