Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred?

To determine what unplanned changes might have happened to inventories (which is part of the total investment component) we must subtract all the other components form the total GDP.

GDP = consumption + (planned investment + inventories) + government + net exports

inventories = GDP - (consumption + planned investment + government + net exports)

inventories = $27 million - ($5 million + $8 million + $10 million + $2 million)
inventories = $27 million - $25 million = $2 million

So inventories increased by $2 million

Consumption is​ $5 million, planned investment spending is​ $8 million, government purchases are​ $10 million, and net exports are equal to​ $2 million. If GDP during that same time period is equal to​ $27 million, what unplanned changes in inventories​ occurred?

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Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred?