Inventories in the United States
A) moved up in 1974 and 1983 due to an unintended buildup of finished goods inventories.
B) moved down in 1974 because of an anticipated mild recession.
C) moved up in 1958 because of a correctly foreseen recovery in 1958.
D) moved down in 2001 by the largest amount since 1960.
E) a and d.

Question

Quizplus · Accepted Answer

Both A and D are correct. In 1974 and 1983, inventories in the United States increased due to an unintended buildup of finished goods, reflecting inaccuracies in demand forecasting or production planning. In 2001, inventories decreased by the largest amount since 1960, indicating a significant reduction in stock levels, possibly in response to economic conditions or changes in inventory management strategies.