-The Table Above Gives Data for the Nation of Mosh

question 4

Multiple Choice

-The table above gives data for the nation of Mosh. If real GDP is $10 trillion, then

• A) firms decrease production because inventories exceed their target levels.
• B) firms increase production because inventories are less than their target levels.
• C) firms decrease production because inventories are less than their target levels.
• D) the economy has reached equilibrium and no change in production will occur.
• E) We need more information to determine whether firms increase, decrease or do not change their production.