Over time in the long run we expect unplanned inventory expenditure to:
A) equal zero as planned inventories should equal actual inventories.
B) increase because firms have a hard time figuring out what consumers want.
C) be negative as firms will tend to reduce production is they think people won't purchase their product.
D) be positive as on average firms tend to be optimistic about sales, but if they don't sell product they store it.
Correct Answer:
Verified
Q67: If we consider the equation PAE =
Q68: When we compare PAE and actual output
Q69: When we compare PAE and actual output
Q70: Q71: One of the major insights by economist Q73: Q74: Actual investment is the: Q75: When PAE < Y the economic response Q76: Planned investment is the: Q77: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A) spending households engage
A) spending households engage