Figure 12.2 -Consider the Economy Described in Figure 12.2. at Point C

question 109

Multiple Choice

Figure 12.2

-Consider the economy described in Figure 12.2. At point C,

• A) businesses produce more than consumers want to spend.
• B) inventories deplete, which pushes the price up to its new equilibrium.
• C) inventories accumulate, which pushes the price down to its new equilibrium.
• D) real GDP is below its equilibrium level.
• E) the economy is in equilibrium.