Refer to the information provided in Table 23.10 below to answer the question(s) that follow.
Table 23.10
-Refer to Table 23.10. At an aggregate output level of $2,000 million, the unplanned inventory change is
A) -$800 million.
B) -$200 million.
C) $700 million.
D) $800 million.

Question

Refer to the information provided in Table 23.10 below to answer the question(s) that follow.
Table 23.10 
-Refer to Table 23.10. At an aggregate output level of $2,000 million, the unplanned inventory change is
A) -$800 million. 
B) -$200 million. 
C) $700 million. 
D) $800 million.

Quizplus · Accepted Answer

From the table, we can see that when aggregate output is $2,000 million, actual investment is $1,200 million and planned investment is $1,000 million. Therefore, unplanned inventory change is $1,200 million - $1,000 million = $200 million, which is negative as the actual investment is greater than planned investment (indicating an unplanned accumulation of inventory).

Refer to the Information Provided in Table 23