The table given below states the value of the GDP and the different components of aggregate expenditure for two years. Table 10.1
Refer to Table 10.1.If real GDP equals $1, 000 in year 1, then:

Question

The table given below states the value of the GDP and the different components of aggregate expenditure for two years. Table 10.1
 Refer to Table 10.1.If real GDP equals $1, 000 in year 1, then:

Quizplus · Accepted Answer

Real GDP equals aggregate expenditure minus net exports. Therefore, aggregate expenditure must equal $1,000 in year 1. Also, investment must equal $200, so $200 must have been spent on fixed investment or unplanned inventory investment. Since consumption is greater than $600, there must have been positive unplanned inventory investment. The difference between aggregate expenditure and GDP equals unplanned inventory investment, so unplanned inventory investment in this case equals $60. Therefore, answer choice D is correct.

The Table Given Below States the Value of the GDP