Why would an increase in planned investment increase real GDP, but an unplanned increase in inventory investment

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Why would an increase in planned investment increase real GDP, but an unplanned increase in inventory investment decrease real GDP, in the aggregate expenditure model?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Question Posted: Feb 07, 2013 05:52 AM

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Why would an increase in planned investment increase real GDP, but an unplanned increase in inventory investment

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An increase in planned investment shifts up the aggregate e...View the full answer

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