If the economy is not in equilibrium,
A) planned expenditures will not equal national income and there will be a planned change in inventories.
B) total expenditures will not equal national income and there will be an unplanned change in inventories.
C) planned expenditures will not equal national income and there will be an unplanned change in inventories.
D) planned expenditures will not equal national income and there will be a planned change in investment spending.

Question

Quizplus · Accepted Answer

When the economy is not in equilibrium, planned expenditures do not match national income, leading to an unplanned change in inventories as firms sell more or less than anticipated.

If the Economy Is Not in Equilibrium