What is the result if the inventory of goods grows from one year to the next?
A) Gross investment will exceed net investment by the amount of the inventory increase.
B) The value of the inventory at the end of the current year should be part of the year's GDP.
C) Inventories are not included in GDP since GDP measures only the value of goods and services actually sold in a year.
D) It will be necessary to add the additional inventory to aggregate expenditures to obtain this year's GDP.
E) It will be necessary to subtract the additional inventory to aggregate expenditures to obtain this year's GDP.
Correct Answer:
Verified
Q38: Which of the following is a final
Q39: Under which circumstance will the level of
Q40: Q41: All of the following,except one,are considered investment.Which Q42: Below are some national income data (all Q44: In 2017 the Fancy Footwork Shoe Company Q45: Below are some national income data (all Q46: If the corporate gross profits of an Q47: Which of the following statements is relevant Q48: What can be concluded if,in a certain![]()
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