CHANGE IN INVENTORIES: The increase or decrease in the stocks of final goods, intermediate goods, raw materials, and other inputs that businesses keep on hand to use in production the occur because aggregate expenditures are not equal to aggregate output. Inventory changes play a key role in the Keynesian economics and the analysis of macroeconomic equilibrium. When inventory changes are zero, then aggregate expenditures are equal to aggregate output and there is no reason for the business sector to change the rate of production. Hence this is equilibrium.

     See also | change in business inventories | planned investment | unplanned investment | actual investment | final good | intermediate good | raw materials | business sector | aggregate expenditures | aggregate output | business cycle | economic indicators |

CHANGE IN INVENTORIES, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: April 20, 2018].

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The revenue received for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue often goes by a simpler and more widely used term... price. For a monopolistically competitive firm average revenue is greater than marginal revenue. Average revenue for a monopolistically competitive firm is often depicted by a negatively-sloped average revenue curve.

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