If output = 1,500 when planned aggregate expenditure = 1,200, the unplanned change in inventories will be positive and output will decrease to adjust to the disequilibrium. Planned expenditure is provided via the Aggregate Expenditure function (AE).
In a contemporary industrial economy, actual output and income could deviate from projections, either in terms of output or in terms of purchases and sales. Plans in some areas of the economy have not been achieved, and there is an incentive to adjust production, if planned expenditure (AE) and GDP are not the same. However, when planned expenditure and actual output are equal, the plans for both are successful.
To learn more about expenditure, click here.
https://brainly.com/question/22636973
#SPJ1
