-In the Above Figure, If Real GDP Is Below $12

question 136

Multiple Choice

-In the above figure, if real GDP is below $12 billion, inventories will be

• A)below target levels, so firms decrease production.
• B)below target levels, so firms increase production.
• C)above target levels, so firms increase production.
• D)above target levels, so firms decrease production.

---

Definitions:

Western Europe

A region comprising the westerly countries of Europe, often including countries such as France, Germany, and the United Kingdom, among others.

Industrial Country

A nation with a relatively high level of industrialization, economic development, and standard of living.

Great Recession

The Great Recession refers to the severe global economic downturn that occurred from late 2007 through mid-2009, characterized by significant declines in economic activity and employment.

Federal Deficit

The shortfall when a government's total expenditures exceed its total revenues for a fiscal year, leading to borrowing or debt accumulation.