If unintended increases in business inventories occur,we can expect:
A) a decline in GDP and rising unemployment.
B) inflation.
C) an increase in consumption.
D) an offsetting increase in planned investment.

Question

Quizplus · Accepted Answer

If unintended increases in business inventories occur, it means that businesses are producing too much and not selling enough, which leads to a decline in GDP because businesses will lower their production and cut jobs. Thus, rising unemployment follows.

If Unintended Increases in Business Inventories Occur,we Can Expect