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:

Marginal Cost

The extra expense involved in making one more unit of a product or service.

Expand Output

The process of increasing the quantity of goods or services produced by a business or economy.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service, a critical concept for decision-making in production and pricing.

Marginal Revenue

The extra income a business earns by selling an additional unit of a product or service.