Inventory Investment Decreases When real GDP increased in the second quarter of 2014, consumption expenditure, exports, and fixed investment increased, but business inventory investment fell from...

Inventory Investment Decreases

When real GDP increased in the second quarter

of 2014, consumption expenditure, exports, and

fixed investment increased, but business inventory investment fell from $14.5 billion to

$7.0 billion.

Source: Statistics Canada, August 29, 2014

Explain how a fall in business inventories influences aggregate demand.