Following recession, slow economic growth, and increasing gas prices, Tim Hortons sales were lower than expected.If a decrease in restaurant sales decreases aggregate expenditure, then
A)unplanned investment will increase.
B)planned investment will increase.
C)planned aggregate expenditure will be greater than real GDP.
D)real GDP will be more than nominal GDP.
E)government deficits will fall.

Question

Quizplus · Accepted Answer

When sales are lower than expected, businesses accumulate more inventory than planned, leading to an increase in unplanned investment.

Following Recession, Slow Economic Growth, and Increasing Gas Prices, Tim