Refer to the information provided in Table 8.8 below to answer the questions that follow.
Table 8.8
-Refer to Table 8.8. 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 8.8 below to answer the questions that follow.
Table 8.8 
-Refer to Table 8.8. 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

An unplanned decrease in inventories occurs when actual sales exceed expected sales, indicating that aggregate output is less than aggregate demand. The correct output level is where the planned expenditure exceeds the output by $200 million, leading to a decrease in inventories.

Refer to the Information Provided in Table 8