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

question 205

Multiple Choice

Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million.If GDP during the same time period is equal to $23 million, what unplanned changes in inventories occurred?

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

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Definitions:

Pulmonary Circulation

The part of the circulatory system responsible for carrying blood from the heart to the lungs and back.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body and pumps it to the right ventricle.

Largest Artery

The largest artery in the human body is the aorta, which carries oxygenated blood from the heart to the rest of the body.

Aorta

The largest artery in the body, originating from the left ventricle of the heart and extending down to the abdomen, distributing oxygenated blood to all parts of the body.