Suppose that inventories were $40 billion in 2012 and $50 billion in 2013.In 2013,national income accountants would:

Question

Quizplus · Accepted Answer

The increase in inventories represents an increase in investment, specifically in the category of "change in private inventories". Therefore, national income accountants would add the $10 billion increase in inventories to other elements of investment in calculating total investment.

Suppose That Inventories Were $40 Billion in 2012 and $50