The assumption to ignore inventory adjustment in the analysis of the economy in the short run is justified because
A) changes in demand that are matched by changes in inventory do not affect production.
B) economists are not held accountable for the assumptions they make.
C) economists are unable to incorporate such relatively minor changes into the model.
D) changes in sales are met with changes in production for the economy as a whole.
E) inventories can be replenished or drawn down as seen fit by firms.

Question

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The Answer of The assumption to ignore inventory adjustment in the analysis of the economy in the short run is justified because
A) changes in demand that are matched by changes in inventory do not affect production.
B) economists are not held accountable for the assumptions they make.
C) economists are unable to incorporate such relatively minor changes into the model.
D) changes in sales are met with changes in production for the economy as a whole.
E) inventories can be replenished or drawn down as seen fit by firms.

The Assumption to Ignore Inventory Adjustment in the Analysis of the Economy