In the above figure, if real GDP is below $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:A
In the above figure, if real GDP is below $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.