Indicate whether the inputs below are variable (V) or fixed (F) in the short run

Of the three major categories of consumption, ________ is the most volatile because their purchase ________

A) services; is sensitive to income levels B) nondurables; is sensitive to income levels C) durables; can be postponed when incomes decline D) durables; they are necessities

When estimating GDP, changes in the level of inventory are calculated because:

a. it indicates the level of employment in the economy. b. it provides information about a firm's expectations. c. it is a good indicator of the competitiveness of the economy. d. it shows the level of business spending by firms. e. it determines the value of goods produced in a year but not sold in that year.