Consumption expenditure is 15,000,government purchases are 5,000,planned investment spending is 4,000 and net exports are 1,500.If total output is 25,000,then unplanned inventory investment is ________.

Question

Quizplus · Accepted Answer

Unplanned inventory investment is calculated as total output minus the sum of consumption expenditure, government purchases, planned investment spending, and net exports. Here, it is 25,000 - (15,000 + 5,000 + 4,000 + 1,500) = 25,000 - 25,500 = -500. This indicates that there was an unplanned decrease in inventories, as actual sales were higher than expected.

Consumption Expenditure Is 15,000,government Purchases Are 5,000,planned Investment Spending Is