-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:

Physiological Needs

Basic essential requirements for human survival, such as food, water, and shelter.

Safety and Security

Refer to measures and protocols implemented to protect individuals from harm or danger, ensuring physical wellbeing and protection against threats.

Motivated

Having a desire or willingness to act or work towards achieving personal or defined goals.

Self-Actualising

Self-actualising refers to the realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.