The table above gives data for the nation of Mosh. If real GDP is $10 trillion, then
A) firms increase production because inventories are less than their target levels.
B) firms decrease production because inventories exceed their target levels.
C) the economy has reached equilibrium and no change in production will occur.
D) firms decrease production because inventories are less than their target levels.
E) We need more information to determine whether firms increase, decrease, or do not change their production.
B
You might also like to view...
Which of the following will increase the yield on a bond?
a. a reduction principal b. an increased risk of default c. an increase in the bond's price d. a reduced risk of default e. none of the above
Economic analysis is based on the premise that
a. people act only out of selfish motives. b. people are always fully informed when making choices. c. changes in the personal benefits or costs of an action influence behavior in a predictable way. d. most human behavior is unpredictable.