If Unplanned Inventory Investment Is Positive, Then

question 245

Multiple Choice

If unplanned inventory investment is positive, then

• A) planned investment must be zero.
• B) planned aggregate spending must be greater than aggregate output.
• C) planned aggregate spending must be less than aggregate output.
• D) planned aggregate spending must equal aggregate output.

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Definitions:

Total Variable Cost

The total of all expenses that fluctuate based on the amount of goods produced or sold, including raw materials and wages for workers directly involved in production.

Units Sold

The total quantity of a company's product that has been purchased by customers during a specific period.

Property Taxes

Taxes paid by property owners based on the value of their property, which are typically used by local governments to fund public services.

Sales Volume

The amount of sales achieved by a business in a specific period, usually measured in units or revenue.