Inventory Levels Unexpectedly Fall and as a Result Firms Increase

question 199

Multiple Choice

Inventory levels unexpectedly fall and as a result firms increase the quantity of goods and services they produce.Which of the following is consistent with these two occurrences?

• A) TP is greater than TE.
• B) TP is less than TE.
• C) TE is equal to TP minus the rise in inventories above the optimum inventory level.
• D) TP is equal to TE.
• E) b and c

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