Refer to the information provided in Figure 8.10 below to answer the questions that follow. Figure 8.10
-Refer to Figure 8.10. Unplanned inventories decrease and output increases when aggregate output is
A)

Question

Refer to the information provided in Figure 8.10 below to answer the questions that follow.  Figure 8.10
-Refer to Figure 8.10. Unplanned inventories decrease and output increases when aggregate output is
A) < $1,000 million. 
B) $1,000 million. 
C) $1,160 million. 
D) $1,200 million.

Quizplus · Accepted Answer

When aggregate output is less than $1,000 million, firms are selling more than they expected, leading to a decrease in unplanned inventories and an increase in output as they try to replenish their stocks.

Refer to the Information Provided in Figure 8