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14 October, 16:44

What happens to aggregate output if unplanned inventory investment is either positive or negative?

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  1. 14 October, 16:49
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    What happens to aggregate output if unplanned inventory investment is either positive or negative? If unplanned inventory were to be positive, then there is an excess demand for goods and the aggregate output will decline. Likewise, if the unplanned inventory investment is negative, there will be an excess demand for goods and aggregate output will rise.
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