In one year, a firm increases its production by $9 million and increases sales by $8 million. All other things in the economy remaining the same, which of the following is true?
A) GDP increases by $8 million and inventory investment decreases by $1 million.
B) GDP increases by $9 million and inventory investment increases by $1 million.
C) Inventory investment decreases by $1 million.
D) GDP increases by $8 million and investment increases by $1 million.
E) GDP increases by $17 million.
B
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To stimulate economic growth, it would be best if developing countries adopted policies to:
A. Discourage foreign investment B. Subsidize state industries C. Build more human capital D. Increase population growth
A market basket:
A. is a tool devised to track how changing prices affect consumers. B. includes all the goods and services produced in an economy. C. includes all the goods and services consumed in an economy, including imports. D. includes all the goods and services consumed in an economy, including net exports.