How are changes in inventory treated in GDP?
What will be an ideal response?
Changes in inventory are part of the investment component of GDP. So, if Dell produces 100,000 computers this year and sells 95,000, the 5,000 unsold computers that are added to Dell's inventory are part of the investment component of GDP for this year.
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As of the end of 1994 which of the countries in our survey had the largest proportion of stock held by the government?
A) The United Kingdom B) The United States C) Japan D) Germany
The amount of autonomous consumption in an economy is measured by the:
a. the intercept of the consumption function when disposable income is positive. b. the intercept of the consumption function where actual consumption is above the 45-degree line. c. the intercept of the consumption function when disposable income is zero. d. the intercept of the consumption function where actual consumption is below the 45-degree line. e. the intercept of the consumption function when disposable income is negative.
The Fed's sale of U.S. government securities in its open market operations constitutes
a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it raise the amount of required reserves in the banking system. c. an expansionary policy because it raises the amount of total and excess reserves in the banking system. d. an expansionary policy because it raises the amount of excess reserves and lowers the amount of required reserves in the banking system. e. an expansionary policy because it raises the amount of required reserves in the banking system.
All of the following affect the demand for labor by a firm except
A. the amount of labor that will be supplied at different wages. B. the level of demand for the firm's products. C. the marginal physical product of the labor. D. the marginal revenue the firm receives for its products.