Question

In the aggregate expenditures model if aggregate expenditures equal 800 billion and real GDP equals 600 there is a_________________
A. investment equals –$200 billion.
B. unplanned inventory accumulation equals $200 billion.
C. consumption plus investment equals $200 billion

Answer 1

Answer:

unplanned inventory accumulation equals -$200 billion.

Explanation:

As we know that

Unplanned inventory equals to

= Real GDP - aggregate expenditures

= 600 billion - 800 billion

= -$200 billion

It shows a difference between the real GDP and the aggregate expenditure

Since the real GDP is less than the aggregate expenditure, so the unplanned inventory should come in negative amount else it comes in a positive amount