Refer to Table 1. At an output level of $1,200 billion, there is an unplanned inventory change of Group of answer choiceszero.positive $10 billion.negative $100 billion.positive $100 billion. The table represents various economic indicators with all values stated in billions of dollars. The data is categorized under the following columns: Output (Income), Consumption Spending, Net Taxes, Investment Spending, and Government Spending.- **Output (Income)** and **Consumption Spending** show a proportional increase from 400 to 2,000 and 400 to 1,600, respectively, in increments of 400.- **Net Taxes** remain constant across all levels of income and spending at 100 billion dollars.- **Investment Spending** is constant at 200 billion dollars for all income levels.- **Government Spending** also remains constant at 100 billion dollars.This table can be used to analyze the relationship between income and various forms of spending in an economy. The constants in Net Taxes, Investment Spending, and Government Spending suggest a focus on how changes in income affect consumption.

In a closed economy, aggregate expenditure is the sum of consumption spending, investment spending, and government spending. i.e., Aggregate expenditure = Consumption spending + Investment spending + Government spending ---------------------------- Unplanned change in inventory is output minus aggregate expenditure i.e., Unplanned change in inventory = Output - Aggregate expenditure. ---------------------------- At an output level of $1200 billion, the aggregate expenditure is $1300 billion i.e., Aggregate expenditure = Consumption spending + Investment spending + Government spending => Aggregate expenditure = 1000 billion + 200 billion + 100 billion = 1300 billion --------------------- Unplanned change in inventory = Output - Aggregate expenditure => Unplanned change in inventory = $1200 billion - $1300 billion => Unplanned change in inventory = -$100 billion ------------------ Hence, the unplanned change in inventory at an output level of $1200 billion is negative $100 billion Answer: Option (C), i.e., negative $100 billion -----------------