-In the above table, C is consumption expenditure, I is investment, G is government expenditure, X is exports, and M is imports. All entries are in dollars. What is the unplanned inventory change when GDP is equal to $400?
A) $26
B) - $5
C) - $26
D) $5

Question

-In the above table, C is consumption expenditure, I is investment, G is government expenditure, X is exports, and M is imports. All entries are in dollars. What is the unplanned inventory change when GDP is equal to $400?
A) $26 
B) - $5 
C) - $26 
D) $5

Quizplus · Accepted Answer

When GDP is $400, the unplanned inventory change is calculated as actual GDP minus planned aggregate expenditure (C + I + G + X - M). If the planned expenditure is $426, then the unplanned inventory change is $400 - $426 = -$26.

-In the Above Table, C Is Consumption Expenditure, I Is