Which of the following about inventory changes and GDP is true?
a. Inventory investment adds to GDP because it represents goods produced during the current period.
b. Inventory investment is subtracted from GDP because the goods were not sold during the period.
c. Inventory investment does not affect GDP because the goods were not sold during the period.
d. Inventory investment does not affect GDP because it does not represent goods produced during the period.
A
You might also like to view...
Suppliers will be willing to supply a product only if
A) the price received is at least equal to the additional cost of producing the product. B) the price is higher than the average cost of producing the product. C) the price received is at least double the additional cost of producing the product. D) the price received is less than the additional cost of producing the product.
If GDP is $1,000 . consumption is $750, interest payments are $200, rent payments are $400, and profits are $200, what must wages and salaries equal?
a. $800 b. $400 c. $250 d. $0 e. $200
At the federal level, the single most important tax, accounting for slightly less than half of revenue, is the
a. corporate income tax b. personal income tax c. estate tax d. property tax e. sales tax
An economy can produce either of these two combinations of goods X and Y: 1,000X and 0Y or 400Y and 0X. Furthermore, the opportunity cost between the two goods is always constant. Which of the following combinations of the two goods, X and Y, lies on the economy's production possibilities frontier?
What will be an ideal response?