Refer to the information provided in Figure 8.9 below to answer the questions that follow. Figure 8.9
-Refer to Figure 8.9. There is a $75 million increase in unplanned inventories at an aggregate output level of
A) $100 million.
B) $200 million.
C) $300 million.
D) $300 million.

Question

Refer to the information provided in Figure 8.9 below to answer the questions that follow.  Figure 8.9
-Refer to Figure 8.9. There is a $75 million increase in unplanned inventories at an aggregate output level of
A) $100 million. 
B) $200 million. 
C) $300 million. 
D) > $300 million.

Quizplus · Accepted Answer

An increase in unplanned inventories occurs when aggregate output exceeds aggregate demand. At $300 million, the output level is likely higher than the aggregate demand, leading to an increase in unplanned inventories.

Refer to the Information Provided in Figure 8