The value of goods added to a firm's inventory in a certain year is treated as
a. consumption, since the goods will be sold to consumers in another period.
b. intermediate goods, and so is not included in that year's GDP.
c. investment, since GDP aims to measure the value of the economy's production that year.
d. spending on durable goods, since the goods could not be inventoried unless they were durable.
c
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The exchange rate between currencies of different countries is controlled primarily by supply and demand in currency markets
Indicate whether the statement is true or false
Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million
Based on this information, which of the following is true? A) Aggregate expenditure is greater than GDP. B) Aggregate expenditure is equal to GDP. C) There was an unplanned change in inventories. D) Aggregate expenditure is less than GDP.