-Refer to the above figure. If real GDP is $4 trillion, then
A) consumption expenditures are too low.
B) unplanned inventories will decrease.
C) unplanned inventories will increase.
D) actual investment spending equals $1 trillion as planned investment spending plus unplanned inventory increases equal $1 trillion.

Question

-Refer to the above figure. If real GDP is $4 trillion, then
A) consumption expenditures are too low. 
B) unplanned inventories will decrease. 
C) unplanned inventories will increase. 
D) actual investment spending equals $1 trillion as planned investment spending plus unplanned inventory increases equal $1 trillion.

Quizplus · Accepted Answer

If real GDP is $4 trillion and consumption is lower than expected, businesses will find that they have more inventory than planned, leading to an increase in unplanned inventories.

-Refer to the Above Figure