-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:

Syntactic

Pertains to the rules and principles that govern the structure of sentences in a language.

Telegraphic

A speaking or writing style that is brief and to the point, often lacking complete sentences but still conveying the intended message.

Productive Language

The aspect of language involving the production of words and sentences to express thoughts, as opposed to understanding language (receptive language).

Comprehend Speech

The process by which the brain interprets and understands spoken language.