At the equilibrium level of real GDP,unplanned inventory adjustment equals
A)planned investment
B)saving
C)zero
D)actual investment
E)consumption

Question

Quizplus · Accepted Answer

At the equilibrium level of real GDP, there are no unplanned inventory changes because production is in line with demand. Therefore, the answer is zero (option C). Unplanned inventory changes occur when firms' production levels do not match consumer demand, resulting in either a shortage or a surplus of goods. At the equilibrium level of real GDP, this does not happen. Planned investment, saving, actual investment, and consumption are not directly related to unplanned inventory adjustments at the equilibrium level of real GDP.

At the Equilibrium Level of Real GDP,unplanned Inventory Adjustment Equals