Explanation An optimistic approach towards the future growth of an economy leads to an increase in planned investment by the investors in the firms. Planned investment increases the productivity of the firm thus accelerating the growth of the economy . This will in turn help in raising the GDP level of the economy. Whereas, when the unplanned inventory increases it implies that supply exceeds the demands of the products and services...

8th Edition

ISBN: 9781544337722

Author: Robert L. Sexton

Publisher: SAGE Publications, Inc

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Question

Chapter 15, Problem 11P

To determine

To explain:

The reason for increase in planned investment increases the real GDP, but an unplanned increase in inventory investment decreases it.

Expert Solution & Answer

Chapter 15 Solutions

Exploring Macroeconomics

Ch. 15 - Prob. 1P Ch. 15 - Prob. 2P Ch. 15 - Prob. 3P Ch. 15 - Prob. 4P Ch. 15 - Prob. 5P Ch. 15 - Prob. 6P Ch. 15 - Prob. 7P Ch. 15 - Prob. 8P Ch. 15 - Prob. 9P Ch. 15 - Prob. 10P

Ch. 15 - Prob. 11P Ch. 15 - Prob. 12P Ch. 15 - Prob. 13P Ch. 15 - Prob. 14P

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