When would we expect to see undesired or unplanned inventory accumulation?
A)when consumption exceeds investment
B)when investment exceeds consumption
C)when autonomous expenditure exceeds induced expenditure
D)when desired aggregate expenditure exceeds actual aggregate expenditure
E)when actual aggregate expenditure exceeds desired aggregate expenditure

Question

Quizplus · Accepted Answer

Undesired or unplanned inventory accumulation happens when actual aggregate expenditure exceeds desired aggregate expenditure. This means that businesses are producing more goods than what consumers are willing to buy, resulting in excess inventory.

When Would We Expect to See Undesired or Unplanned Inventory