Which of the following about inventory changes and GDP is true?
a. Inventory investment adds to GDP because it represents goods produced during the current period.
b. Inventory investment is subtracted from GDP because the goods were not sold during the period.
c. Inventory investment does not affect GDP because the goods were not sold during the period.
d. Inventory investment does not affect GDP because it does not represent goods produced during the period.
A
You might also like to view...
If the public believes that the commitment to a nominal anchor is not credible, the effect of a positive aggregate demand shock is for ________
A) short-run aggregate supply to shift down B) short-run aggregate supply to remain unchanged C) short-run aggregate supply to shift up D) inflation, but not economic activity, to increase
In international trade jargon, constant-cost production-possibility curves are associated with ________ specialization, while increasing-cost production-possibility curves are associated with ________ specialization.
A. complete; partial B. no; partial C. partial; complete D. complete; no