If the economy adds to its inventory of goods during some year:
a) gross investment will exceed net investment by the amount of the inventory increase.
b) this amount should be ignored in calculating that year's GDP.
c) this amount should be subtracted in calculating that year's GDP.
d) this amount should be included in calculating that year's GDP.
d) this amount should be included in calculating that year's GDP.
You might also like to view...
In the national income accounts, government expenditure on goods and services exclude
A) transfer payments. B) state and local government purchases. C) local government purchases but include state government purchases. D) spending on national defense.
Refer to Figure 18-7. The second highest 20 percent of households
A) earn 24 percent of the society's total income. B) earn 28 percent of the society's total income. C) earn 42 percent of the society's total income. D) earn 72 percent of the society's total income.
Limits on the value of the assets that commercial banks can acquire relative to their capital is known as:
A) equity requirements B) capital requirements C) required reserves D) asset requirements
A dominant strategy exists if:
A. a player has a strategy that yields the highest payoff regardless of the other player's choice. B. both players have the highest payoff when they make the same choice. C. one strategy yields the highest possible payoff. D. both players make the same choice.