-In the above figure, if real GDP equals $15 trillion,
A) actual and planned investment will both increase.
B) unplanned inventories will decrease.
C) unplanned inventories will increase.
D) actual investment will decrease but planned investment will increase.

Question

-In the above figure, if real GDP equals $15 trillion,
A) actual and planned investment will both increase. 
B) unplanned inventories will decrease. 
C) unplanned inventories will increase. 
D) actual investment will decrease but planned investment will increase.

Quizplus · Accepted Answer

When real GDP is higher than expected, it often leads to an increase in unplanned inventories as businesses produce more than what is sold.

-In the Above Figure, If Real GDP Equals $15 Trillion