Consumption is $5 million,planned investment spending is $8 million,government purchases are $10 million,and net exports are equal to $2 million.If GDP during that same time period is equal to $27 million,what unplanned changes in inventories occurred?
A) There was an unplanned increase in inventories equal to $2 million.
B) There was no unplanned change in inventories.
C) There was an unplanned decrease in inventories equal to $2 million.
D) There was an unplanned decrease in inventories equal to $19 million.
Correct Answer:
Verified
Q7: Household spending on goods and services is
Q8: The aggregate expenditure model focuses on the
Q9: When aggregate expenditure = GDP
A)macroeconomic equilibrium occurs.
B)the
Q10: Consumption spending is $16 million,planned investment spending
Q11: The key idea of the aggregate expenditure
Q13: Actual investment spending does not include
A)spending on
Q14: Inventories refer to
A)goods which have been presold
Q15: At macroeconomic equilibrium
A)total investment equals total inventories.
B)total
Q16: Each of the following is one of
Q17: Consumption spending is $5 million,planned investment spending
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