Additions to inventory are

A) not counted as an expenditure in GDP accounting.
B) counted as an intermediate input.
C) counted as a component of investment spending.
D) subtracted from sales revenue in calculating profit income.

C

Economics

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When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to ________

A) a recessionary gap; rise B) a recessionary gap; remain stable C) an inflationary gap; rise D) a recessionary gap; fall E) an inflationary gap; fall

Economics

What is on the horizontal axis when we draw a total product curve?

a. total cost b. marginal cost c. quantity of output d. quantity of a variable input

Economics