At the equilibrium level of real GDP, what does unplanned inventory adjustment equal?
A) a negative number
B) a positive number
C) 0
D) 1

Question

At the equilibrium level of real GDP, what does unplanned inventory adjustment equal?  
A) a negative number 
B) a positive number 
C) 0 
D) 1

Quizplus · Accepted Answer

At the equilibrium level of real GDP, there are no unplanned inventory adjustments. This is because at this level, firms have produced and sold the exact amount of goods and services that consumers demand, leaving no excess or shortfall in the inventory. Therefore, unplanned inventory adjustment equals 0.

At the Equilibrium Level of Real GDP, What Does Unplanned