-Use the Figure Above to Answer This Question

question 4

Multiple Choice

-Use the figure above to answer this question. At a price level of 90

• A) people will be forced to cut consumption so that aggregate demand will decrease.
• B) the aggregate quantity demanded exceeds real GDP and inventories will decrease.
• C) inventories increase and firms will increase production.
• D) the aggregate quantity demanded exceeds real GDP, inventories increase and the price level will rise.

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Definitions:

Outside Suppliers

External entities that provide goods or services to another company, playing a key role in supply chains and procurement processes.

Quality and Quantity

Aspects of goods or services, with quality referring to the degree of excellence and quantity to the measure or volume.

Custom Machine Shops

Businesses specializing in the custom design and manufacture of specialized parts and machinery tailored to specific customer requirements.