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Use the following table to answer the following question. Short-run Long-run Aggregate aggregate aggregate demand (billions supply (billions supply (billions Price level of 2001 pounds)

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Use the following table to answer the following question. Short-run Long-run Aggregate aggregate aggregate demand (billions supply (billions supply (billions Price level of 2001 pounds) of 2001 pounds) of 2001 pounds 130 800 1.200 1.000 120 900 1,100 1,000 110 1,000 1,000 1,000 100 1,100 900 1,000 90 1,200 800 1,000 The data in the above table indicate that when the price level is 120: O firms have unexpectedly low inventories, so prices will rise. O desired inventory levels have been attained. O firms have unexpectedly high inventories, so prices fall O inventories are at levels planned by firms. O firms will plan to increase the level of output

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