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

question 372

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 130 & 8 & 12 & 10 \\\hline 120 & 9 & 11 & 10 \\\hline 110 & 10 & 10 & 10 \\\hline 100 & 11 & 9 & 10 \\\hline 90 & 12 & 8 & 10 \\\hline\end{array}$$
-The data in the above table indicate that when the price level is 120,

• A) firms have unexpectedly high inventories, so prices fall.
• B) inventories are at levels planned by firms.
• C) firms will plan to increase the level of output.
• D) firms have unexpectedly low inventories, so prices will rise.

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Definitions:

Enterprise Resource Planning

Integrated management software systems that automate many aspects of a business's operations, from production to human resources.

Internal Applications

Software or systems used within an organization to support its business processes, communication, and information management needs.

Inventory Levels

The quantity of goods and materials on hand in a warehouse or stockroom at any given time.