Which of these is unplanned investment?

A firm building a new factory as plannedCorrect answerYour answerA firm buying machines it ordered last yearCorrect answerYour answerA planned rise in stocks before a festivalCorrect answerYour answerUnsold goods piling up because sales were lower than firms expectedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Unsold stock that firms did not intend to hold is unplanned inventory investment.

Concept: Unplanned investment
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPlanned investment; ex ante and ex post

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Ten questions from Aggregate Demand, Consumption & Saving, at your own pace.

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Which of these is unplanned investment?

Explanation