Real GDP is $8,000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8. (Scenario: Income–Expenditure Equilibrium) Look at the scenario Income–Expenditure Equilibrium. How much is unplanned inventory investment?

Question

contestada

Respuesta :

aquialaska aquialaska · Answer 1 · 2020-04-16T04:23:04+02:00

The unplanned inventory investment should be $900 at the time when the scenario should be seen.

Calculation of the unplanned inventory investment

Since

GDP = $8,000

Autonomous consumption = $500

Investment spending = $200

Marginal propensity = 0.8

So, we can calculate the unplanned inventory investment by using following formula:

GDP = ( autonomous consumption + investment spending) + (marginal propensity × GDP) + Unplanned inventory investment

So, $8,000 = $700 + (0.8 × $8,000) + Unplanned inventory investment
$8,000 = $700 + $6,400 + Unplanned inventory investment

$8,000 = $7,100 + Unplanned inventory investment

So, Unplanned inventory investment = $8,000 - $7,100

= $900

Learn more about an investment here: https://brainly.com/question/24301559