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Assume That the Demand for Goods and Services Falls Across

Question 21

Multiple Choice

Assume that the demand for goods and services falls across the entire economy and for an extended period of time.If the prices are inflexible, the unintended increase in business inventories would force:


A) businesses to keep the production at the existing level.
B) businesses to increase the level of production.
C) businesses to lower the level of production.
D) businesses to increase the level of employment.

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