-In the above figure, if real GDP equals $17 trillion
A) actual and planned investment will both increase.
B) unplanned inventories will increase.
C) actual investment will decrease but planned investment will increase.
D) unplanned inventories will decrease.

Question

-In the above figure, if real GDP equals $17 trillion
A) actual and planned investment will both increase. 
B) unplanned inventories will increase. 
C) actual investment will decrease but planned investment will increase. 
D) unplanned inventories will decrease.

Quizplus · Accepted Answer

Unplanned inventories increase when real GDP exceeds the level where aggregate demand equals aggregate supply, indicating that firms are producing more than is being demanded, leading to an accumulation of unsold goods.

-In the Above Figure, If Real GDP Equals $17 Trillion