If the real national output is less than the equilibrium real national output producers find

A) their inventories decreasing and expand their production.
B) their inventories increasing and expand their production.
C) their inventories decreasing and contract their production.
D) their inventories increasing and contract their production.

Equilibrium Real National Output

The level of output where aggregate supply equals aggregate demand in an economy, adjusted for inflation.

Inventories

Goods that have been produced but remain unsold.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).