You observe that unplanned inventories are increasing.You predict that there will be
A)a recession.
B)an expansion.
C)a trough.
D)a collapse of the stock market.
E)a business cycle.

Question

Quizplus · Accepted Answer

An increase in unplanned inventories suggests that businesses are overproducing and not selling enough, which can lead to a decrease in production and ultimately a recession.

You Observe That Unplanned Inventories Are Increasing