Inventories in the United States
A) usually move up and down with nominal, but not real, GDP.
B) usually move up and down with the price component of nominal GDP.
C) usually move up and down with real GDP.
D) can occasionally climb or fall relative to real GDP if the macroeconomy is beset by some unexpected downturn or upswing.
E) c and d.

Question

Quizplus · Accepted Answer

Inventories in the United States typically fluctuate in tandem with real GDP, reflecting changes in production and consumption patterns. Additionally, inventories can indeed climb or fall relative to real GDP during unexpected economic downturns or upswings, as businesses adjust their stock levels in response to changing economic conditions.