A producer plans to add Rs 200 worth of goods to her stock during a y…

A producer plans to add Rs 200 worth of goods to her stock during a year. Because of an unforeseen rise in demand, she has to sell goods worth Rs 60 from her stock. Match List-I with List-II:

List-I		List-II
(A)	Her ex ante (planned) investment	(I)	Rs 60
(B)	Her ex post (actual) investment	(II)	–Rs 60
(C)	Unplanned change in her stock (inventory)	(III)	Rs 140
(D)	Goods sold from stock to meet the extra demand	(IV)	Rs 200

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Planned investment is ex ante. What really happens to her stock is ex post.

List-I	List-II	Reason
(A) Her ex ante (planned) investment	(IV) Rs 200	She plans to add Rs 200 to her stock.
(B) Her ex post (actual) investment	(III) Rs 140	Her stock really goes up by 200 − 60 = Rs 140.
(C) Unplanned change in her stock (inventory)	(II) –Rs 60	The fall of Rs 60 was not planned, so it is an unplanned change of −Rs 60.
(D) Goods sold from stock to meet the extra demand	(I) Rs 60	She sells Rs 60 of goods from her stock.

NCERT (2026-27): “4.1 Aggregate Demand and its Components … These terms have dual connotations. In Chapter 2 they were used in the accounting sense – denoting actual values of these items as measured by the activities within the economy in a certain year. We call these actual or accounting values ex post measures of these items. These terms, however, can be used with a different connotation. Consumption may denote not what people have actually consumed in a given year, but what they had planned to consume during the same period. Similarly, investment can mean the amount a producer plans to add to her inventory. It may be different from what she ends up doing. Suppose the producer plans to add Rs 100 worth goods to her stock by the end of the year. Her planned investment is, therefore, Rs 100 in that year. However, due to an unforeseen upsurge of demand for her goods in the market the volume of her sales exceeds what she had planned to sell and, to meet this extra demand, she has to sell goods worth Rs 30 from her stock. Therefore, at the end of the year, her inventory goes up by Rs (100 – 30) = Rs 70 only. Her planned investment is Rs 100 whereas her actual, or ex post, investment is Rs 70 only. We call the planned values of the variables – consumption, investment or output of final goods – their ex ante measures. In simple words, ex-ante depicts what has been planned, and ex-post depicts what has actually happened. …”