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Short-run Long-run Aggregate aggregate Price demand aggregate level (trillions of supply supply (trillions of 2009 dollars) (trillions of 2009 dollars) 2009 dollars) 130 8 12

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Short-run Long-run Aggregate aggregate Price demand aggregate level (trillions of supply supply (trillions of 2009 dollars) (trillions of 2009 dollars) 2009 dollars) 130 8 12 10 120 9 11 10 110 10 10 10 100 11 9 10 90 12 8 10 The data in the above table indicate that when the price level is 100 Select one: A. firms will plan to decrease the level of output. B. inventories are at levels planned by firms. C. firms have unexpectedly low inventories, so prices will rise. D. firms have unexpectedly high inventories, so prices fall

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