Principles of Macroeconomics / Unit 9 MAC 0821 short lesson, about 20 seconds
Planned and Unplanned Investment
Captions available
The idea
Unsold goods count as investment in inventories. Goods piling up unsold are unplanned investment; goods sold from stock are negative unplanned investment. Equilibrium is where unplanned investment is zero.
In practice
Inventories are the signal firms read before changing production.
Where people slip
The two sources differ on how sharply to draw this; the course keeps it, because it explains the adjustment.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics