Inventory is the
a. net change in inventories of final goods awaiting sale.
b. net change in inventories of materials used in the production process.
c. included in investment when calculating GDP.
d. Both a and b.
e. All of the above.
E
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Which of the following is not a condition for perfect competition?
(A) Many buyers and sellers participate in the market. (B) Sellers are able to enter and exit the market freely. (C) Sellers offer a wide variety of products. (D) Buyers and sellers are well informed about products.
In Figure 16-1 above, the increase in gross investment lags actual sales because
A) replacement investment is not determined by actual sales. B) expected sales lag actual sales and net investment is determined by expected sales. C) actual sales lag expected sales and net investment is determined by expected sales. D) expected sales lead actual sales and net investment is determined by expected sales.