Question
' Planned aggregate spending could be different from real GDP only if there is unplanned inventory investment in the economy. Critically evaluate the significance of
'Planned aggregate spending could be different from real GDP only if there is unplanned inventory investment in the economy.Critically evaluate the significance of the statement in the present COVID-19 crisis.' Describe how the economy adjusts to a new income-expenditure (I-E) equilibrium? Support your answer with a suitable diagram/s. Why is it essential for businesses to minimize any unplanned changes in their inventories? Is it easier or harder for firms to minimize any planned changes in their inventories today than it was 30 years ago? Justify.
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