Refer to the information provided in Figure 23.10 below to answer the question(s) that follow. Figure 23.10
-Refer to Figure 23.10. There is a $100 million unplanned decrease in inventories at an aggregate output level of
A) $500 million.
B) $1,000 million.
C) $1,200 million.
D) $1,200 million.

Question

Refer to the information provided in Figure 23.10 below to answer the question(s) that follow.  Figure 23.10
-Refer to Figure 23.10. There is a $100 million unplanned decrease in inventories at an aggregate output level of
A) $500 million. 
B) $1,000 million. 
C) $1,200 million. 
D) > $1,200 million.

Quizplus · Accepted Answer

The unplanned decrease in inventories is equal to the vertical distance between the aggregate expenditure line and the 45-degree line at an aggregate output level of $1,000 million.

Refer to the Information Provided in Figure 23