In national-income accounting,a reduction of inventories counts as

Name: In national-income accounting,a reduction of inventories counts as
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When inventories are reduced, it means that less was produced than was sold, resulting in a negative change in inventories. This negative change is included in the calculation of investment in national-income accounting, as it represents a decrease in the stock of physical capital. Therefore, a reduction of inventories counts as negative investment.

In National-Income Accounting,a Reduction of Inventories Counts as