In the above figure, if real GDP is greater than $12 trillion, inventories will be
A. below target levels so firms increase production.
B. below target levels so firms decrease production.
C. above target levels so firms increase production.
D. above target levels so firms decrease production.
Answer:D
In the above figure, if real GDP is greater than $12 trillion, inventories will be
A. below target levels so firms increase production. B. below target levels so firms decrease production. C. above target levels so firms increase production. D. above target levels so firms decrease production.