Consumption Is $5 Billion, Planned Investment Spending Is $8 Billion

question 151

Multiple Choice

Consumption is $5 billion, planned investment spending is $8 billion, government purchases are $10 billion, and net exports are equal to $2 billion.If GDP during that same time period is equal to $27 billion, what unplanned changes in inventories occurred?

• A)There was an unplanned increase in inventories equal to $2 billion.
• B)There was no unplanned change in inventories.
• C)There was an unplanned decrease in inventories equal to $2 billion.
• D)There was an unplanned decrease in inventories equal to $19 billion.
• E)There was an unplanned increase in inventories of $3 billion.

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Definitions:

Functionalism

A theoretical perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Lower Income

A financial status typically associated with earning below the median household income, leading to limited economic resources and purchasing power.

Upper Income

A descriptor for individuals or households that earn significantly more than the average income level, often associated with higher socioeconomic status.