If the change in business inventories is positive, then final sales are
A) zero.
B) less than GDP.
C) greater than GDP.
D) equal to GDP.

Question

Quizplus · Accepted Answer

When the change in business inventories is positive, it means businesses are accumulating more goods than they are selling. This indicates that the total production (GDP) is greater than what is being sold (final sales), making final sales less than GDP.

If the Change in Business Inventories Is Positive, Then Final