During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory. During the fourth quarter of this year, the firm sells the goods at a retail outlet, with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter. These actions affect which component(s)
of fourth-quarter GDP?
a. they increase consumption and have no affect on investment
b. they increase consumption and decrease investment
c. they have no affect on either consumption or investment
d. they have no affect on consumption and decrease investment
b
Economics
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Managed floats are only effective in the long run
a. True b. False
Economics
Josiah installed a metal sculpture in his front yard. A positive externality arises if the sculpture
a. increases the value of other properties in the neighborhood. b. increases the value of Josiah's home c. is visually unappealing to Josiah's neighbors. d. creates a safety hazard for neighborhood children.
Economics