At equilibrium expenditure, unplanned changes in inventory
A) must be zero.
B) must be negative.
C) must be positive.
D) might be either positive or negative.

Question

Quizplus · Accepted Answer

At equilibrium expenditure, the quantity demanded equals the quantity supplied. As a result, the total production sold matches the total production produced. Therefore, there are no unplanned changes in inventory, and it remains zero at the equilibrium expenditure level.

At Equilibrium Expenditure, Unplanned Changes in Inventory