The data in the above table indicate that when the price level is 120,
A. firms have unexpectedly low inventories, so prices will rise.
B. inventories are at levels planned by firms.
C. firms will plan to increase the level of output.
D. firms have unexpectedly high inventories, so prices fall.
Answer:D
The data in the above table indicate that when the price level is 120,
A. firms have unexpectedly low inventories, so prices will rise. B. inventories are at levels planned by firms. C. firms will plan to increase the level of output. D. firms have unexpectedly high inventories, so prices fall.