If unplanned investment in business inventories occurs, we can expect:
A)a decline in GDP.
B)inflation.
C)an increase in consumption.
D)an offsetting increase in planned investment.

Question

Quizplus · Accepted Answer

Unplanned investment in inventories typically indicates that goods are not being sold as expected, leading to a potential decline in production and GDP.

If Unplanned Investment in Business Inventories Occurs, We Can Expect