If aggregate demand is less than the level of aggregate output,then ________ inventory investment will be ________.
A)planned;positive
B)actual;positive
C)actual;negative
D)planned;negative

Question

Quizplus · Accepted Answer

When aggregate demand is less than the level of aggregate output, firms end up with more goods than they intended to sell, leading to an unplanned increase in inventories. This is referred to as actual inventory investment being positive.

If Aggregate Demand Is Less Than the Level of Aggregate