-The data in the above table indicate that when the price level is 120,
A) inventories rise and the price level falls.
B) the unemployment rate is at its equilibrium level.
C) the economy is in a long- run macroeconomic equilibrium.
D) inventories fall and the price level rises.

Question

-The data in the above table indicate that when the price level is 120,
A) inventories rise and the price level falls. 
B) the unemployment rate is at its equilibrium level. 
C) the economy is in a long- run macroeconomic equilibrium. 
D) inventories fall and the price level rises.

Quizplus · Accepted Answer

When the price level is 120, if inventories rise, it indicates that aggregate supply exceeds aggregate demand, leading to downward pressure on the price level.

-The Data in the Above Table Indicate That When the Price