Refer to the information provided in Table 8.8 below to answer the questions that follow.
Table 8.8
-Refer to Table 8.8. At an aggregate output level of $4,000 million, the unplanned inventory change is
A) $1,200 million.
B) $400 million.
C) $0.
D) -$400 million.

Question

Refer to the information provided in Table 8.8 below to answer the questions that follow.
Table 8.8 
-Refer to Table 8.8. At an aggregate output level of $4,000 million, the unplanned inventory change is
A) $1,200 million. 
B) $400 million. 
C) $0. 
D) -$400 million.

Quizplus · Accepted Answer

Looking at the final column of the table, at an aggregate output level of $4,000 million, planned investment is $500 million and actual investment is $100 million. This means that unplanned inventory change is $400 million (-$100 million actual investment + $500 million planned investment = $400 million). Therefore, the answer is D, -$400 million.

Refer to the Information Provided in Table 8