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hello in this video were going to look at how to solve for unplanned inventory investment heres our economy consumption investment government purchases and taxes and our question is what is the level of unplanned inventory investment at y equals 800 1000 and 1200. so first were going to solve for planned expenditure planned expenditure e equals c plus i plus g and now well simplify and we get our plant expenditure of 200 plus 0.8 y if y equals 800 plugging 800 into planned expenditure plant expenditure is 840. in this case e is greater than y or plant expenditure is greater than the output by the firms so firms are selling more output than they are producing so there is an unplanned decrease in inventory of the difference of forty dollars so eight forty minus eight hundred so that is a unplanned decrease in inventory if y equals 1 000 plant expenditure equals 1 000. so e equals y and in this case planned expenditure equals output there is no unplanned change in inventory accumulati
