Refer to the information provided in Table 8.5 below to answer the questions that follow.
Table 8.5

-Refer to Table 8.5.If aggregate output equals ________,there will be a $200 million unplanned decrease in inventories.
A)$3,000 million
B)$4,000 million
C)$5,000 million
D)$6,000 million

Question

Refer to the information provided in Table 8.5 below to answer the questions that follow.
Table 8.5
 
-Refer to Table 8.5.If aggregate output equals ________,there will be a $200 million unplanned decrease in inventories.
A)$3,000 million 
B)$4,000 million 
C)$5,000 million 
D)$6,000 million

Quizplus · Accepted Answer

According to Table 8.5, at an aggregate output of $5,000 million, planned investment is $400 million and actual investment is $200 million, resulting in an unplanned decrease in inventories of $200 million. At all other output levels, either the planned investment equals actual investment or there is a planned increase in inventories, so the unplanned decrease in inventories would not be $200 million.

Refer to the Information Provided in Table 8