If AE = 100 + 0.7Y and Y = 300, then unplanned inventories
A)increase by 10.
B)increase by 200.
C)decrease by 10.
D)decrease by 200.
E)do not change and equilibrium exists.

Name: If AE = 100 + 0.7Y and Y = 300, then unplanned inventories A)increase by 10. B)increase by 200. C)decrease by 10. D)decrease by 200. E)do not change and equilibrium exists.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find unplanned inventories, calculate AE: AE = 100 + 0.7(300) = 310. Since Y = 300, AE > Y, indicating a decrease in unplanned inventories by 10.