Refer to the information provided in Table 8.10 below to answer the questions that follow.
Table 8.10
-Refer to Table 8.10. At an aggregate output level of $2,000 million, the unplanned inventory change is
A) -$800 million.
B) -$200 million.
C) $700 million.
D) $800 million.

Question

Refer to the information provided in Table 8.10 below to answer the questions that follow.
Table 8.10 
-Refer to Table 8.10. At an aggregate output level of $2,000 million, the unplanned inventory change is
A) -$800 million. 
B) -$200 million. 
C) $700 million. 
D) $800 million.

Quizplus · Accepted Answer

According to Table 8.10, at an aggregate output level of $2,000 million, planned investment is $1,200 million and actual investment is $1,000 million. Therefore, unplanned inventory change is $200 million (planned investment - actual investment), which is negative because actual investment is less than planned investment. Thus, the correct choice is B, which corresponds to -$200 million.

Refer to the Information Provided in Table 8