Suppose that in 2015,Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth.Is the remaining $4 million increase in inventories part of GDP for 2015? 1.Yes,since changes in inventories are part of consumption expenditures.
2.Yes,since they are part of the economy's output in 2015.
3.Yes,since changes in inventories are part of actual investment.
A) 1 only
B) 2 only
C) 3 only
D) both 1 and 2
E) both 2 and 3
Correct Answer:
Verified
Q26: In national-income accounting,replacement investment is the investment
Q32: In national-income accounting,a rise in Ga will
Q39: Consider the circular flow of expenditure and
Q39: To calculate GDP from the expenditure side,one
Q43: Suppose that in 2015,ABC Corporation produced $6
Q44: Which of the following statements about depreciation
Q46: When calculating GDP from the expenditure side,which
Q47: When calculating GDP from the expenditure side,which
Q48: When calculating GDP from the expenditure side,"actual
Q57: Consider Canada's national accounts.An example of a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents