How are changes in inventory treated in GDP?
What will be an ideal response?
Changes in inventory are part of the investment component of GDP. So, if Dell produces 100,000 computers this year and sells 95,000, the 5,000 unsold computers that are added to Dell's inventory are part of the investment component of GDP for this year.
Economics
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One reason why many low-income countries experience low rates of growth is because of poor public education and health
Indicate whether the statement is true or false
Economics
Which one of the following is part of the M2 definition of the money supply, but not part of M1?
a. Checkable deposits. b. Currency held in banks. c. Currency in circulation. d. Small time deposits of less than $100,000.
Economics