When actual investment is greater than planned investment:
A)firms have sold less output than expected.
B)firms have sold more output than expected.
C)the quantity of output sold is the amount the firm expected to sell.
D)the economy produces the short-run equilibrium output.

Question

When actual investment is greater than planned investment:
A)firms have sold less output than expected.
B)firms have sold more output than expected.
C)the quantity of output sold is the amount the firm expected to sell.
D)the economy produces the short-run equilibrium output.

Quizplus · Accepted Answer

When goods are unsold they revert to inventory, and inventory is considered investment.

When Actual Investment Is Greater Than Planned Investment