-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) -$26
C) $5
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) -$26 
C) $5 
D) -$5

Quizplus · Accepted Answer

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

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