If the economy adds to its inventory of goods during some year:
A. gross investment will exceed net investment by the amount of the inventory increase.
B. this amount should be ignored in calculating that year's GDP.
C. this amount should be subtracted in calculating that year's GDP.
D. this amount should be included in calculating that year's GDP.
D. this amount should be included in calculating that year's GDP.
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In the short run, an increase in demand for a good that is sold in a perfectly competitive market
A) increases the number of firms in the market. B) increases the economic profits of existing firms in the market. C) has no effect on the price. D) causes more firms to shut down.
The one feature of capital that makes it unlike most inputs is that it is
a. durable. b. productive. c. an economic good. d. used to produce only consumer goods.