IS Graph 2
-On the graph above,unplanned inventory investment occurs if the economy is moving from point ________ to point ________.
A)D;C
B)C;B
C)B;A
D)all of the above
E)none of the above

Question

IS Graph 2 
-On the graph above,unplanned inventory investment occurs if the economy is moving from point ________ to point ________.
A)D;C 
B)C;B 
C)B;A 
D)all of the above 
E)none of the above

Quizplus · Accepted Answer

Unplanned inventory investment occurs when actual sales are lower than businesses expected, leading them to have more inventory than planned. This can happen in any transition where the economy is slowing down or contracting, such as moving from a higher point of economic activity to a lower one, as described in all the given transitions (D to C, C to B, and B to A).