-Refer to Table 11.2. At an aggregate output level of $200, inventories will:

Name: -Refer to Table 11.2. At an aggregate output level of $200, inventories will:
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

At an aggregate output level of $200, inventories will decrease by 150. This is because at this output level, planned aggregate expenditure is $50 less than aggregate output, so firms will reduce their inventories by $150 to bring them in line with planned aggregate expenditure.