Suppose that at a particular level of real GDP, the unintended change in inventories is zero.How will this affect the level of real GDP?
A) The level of real GDP will be less than the equilibrium level of real GDP demanded.
B) The level of real GDP will be greater than the equilibrium level of real GDP demanded.
C) The level of real GDP will be the equilibrium level of real GDP demanded.
D) The level of real GDP will first be greater, and then less, than the equilibrium level of real GDP.

Question

Suppose that at a particular level of real GDP, the unintended change in inventories is zero.How will this affect the level of real GDP?  
A) The level of real GDP will be less than the equilibrium level of real GDP demanded. 
B) The level of real GDP will be greater than the equilibrium level of real GDP demanded. 
C) The level of real GDP will be the equilibrium level of real GDP demanded. 
D) The level of real GDP will first be greater, and then less, than the equilibrium level of real GDP.

Quizplus · Accepted Answer

If the unintended change in inventories is zero, it means that the level of real GDP produced is exactly the same as the level of real GDP demanded, which is the equilibrium level. Therefore, the level of real GDP will be the equilibrium level of real GDP demanded.

Suppose That at a Particular Level of Real GDP, the Unintended