Refer to the information provided in Table 8.7 below to answer the questions that follow.
Table 8.7
-Refer to Table 8.7. If aggregate output equals ________, there will be a $100 billion unplanned decrease in inventories.
A) $200 billion
B) $400 billion
C) $600 billion
D) $800 billion

Question

Refer to the information provided in Table 8.7 below to answer the questions that follow.
Table 8.7 
-Refer to Table 8.7. If aggregate output equals ________, there will be a $100 billion unplanned decrease in inventories.
A) $200 billion 
B) $400 billion 
C) $600 billion 
D) $800 billion

Quizplus · Accepted Answer

An unplanned decrease in inventories occurs when aggregate output is less than aggregate demand. The correct choice would be the one where aggregate demand exceeds aggregate output by $100 billion, leading to a decrease in inventories by that amount.

Refer to the Information Provided in Table 8