Assuming that C + I_r + G

Question

Assuming that C + I_r + G < C + I + G,then A)there is an unintended inventory accumulation. B)there is an unintended inventory shortfall. C)aggregate demand is less than output. D)Both b and c

Quizplus · Accepted Answer

The inequality C + I_r + G < C + I + G implies that I_r < I, which means that investment spending is less than planned. This could be due to a decrease in overall aggregate demand, which would lead to a shortfall in output and unintended inventory accumulation. Therefore, both options B and C are correct.

Assuming That C + Ir + G < C

Assuming That C + I_r + G < C