Figure 12-1 -Refer to Figure 12-1.If the Economy Is at Point L,what

Multiple Choice

Figure 12-1
-Refer to Figure 12-1.If the economy is at point L,what will happen?

A) Inventories have fallen below their desired level,and firms decrease production.
B) Inventories have fallen below their desired level,and firms increase production.
C) Inventories have risen above their desired level,and firms decrease production.
D) Inventories have risen above their desired level,and firms increase production.