Asked by Caleb Glenney on Jul 22, 2024
Verified
At the equilibrium level of real gross domestic product (GDP) ,unplanned inventory adjustment equals _____.
A) planned investment
B) saving
C) zero
D) actual investment
E) consumption
Unplanned Inventory
Excess goods that businesses unintentionally accumulate due to lower-than-expected demand, leading to potential adjustments in production or pricing strategies.
Real GDP
stands for Real Gross Domestic Product, which measures the value of all goods and services produced by an economy over a specific period, adjusted for inflation.
- Pinpoint and investigate the steady-state level of Gross Domestic Product (GDP).
- Assess how alterations in the constituents of aggregate expenditure influence GDP.
Verified Answer
KG
Karan GiareJul 26, 2024
Final Answer :
C
Explanation :
At the equilibrium level of real GDP, all goods produced are being sold so there is no unplanned inventory accumulation or depletion. Therefore, unplanned inventory adjustment equals zero.
Learning Objectives
- Pinpoint and investigate the steady-state level of Gross Domestic Product (GDP).
- Assess how alterations in the constituents of aggregate expenditure influence GDP.
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