If output exceeds planned aggregate spending,the result is unintended inventory increases.

Question

Quizplus · Accepted Answer

If output exceeds planned aggregate spending, it means that the goods and services produced are not being purchased by consumers, businesses or the government as much as expected. This can result in unintended inventory increases, as producers will have more goods and services on hand than they can sell, leading to an accumulation of unsold inventory.

If Output Exceeds Planned Aggregate Spending,the Result Is Unintended Inventory