This year a firm produces $100 million worth of cars this year and sells $102 million worth of cars.
Which of the following is true?
A) Inventory investment will increase by $2 million.
B) GDP for this year will increase by $202 million.
C) GDP for this year will increase by $102 million.
D) GDP for this year will increase by $100 million.
E) The premise of the question is wrong because it is impossible for a firm to sell more than it produces in a given time period.
Correct Answer:
Verified
Q80: Q81: Investment is defined as the purchase of Q82: Spending on financial assets-------------counted as part of Q83: Measuring total production by valuing items at Q84: The total production within an economy is Q86: In comparing the magnitudes of the components Q87: The business cycle has two phases, Q88: If a firm does not sell all Q89: The base year is 2010. A country Q90: After calculating net domestic product at factor
A)the
A)expansion and
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