Which of the following about inventory changes and GDP is true?
What will be an ideal response?
Inventory investment adds to GDP because it represents goods produced during the current period.
You might also like to view...
When part of a bank loan does not return to the banking system but rather remains outside the banking system as currency, then the money multiplier ________ in size and the amount of money created by an open market operation ________
A) increases; decreases B) does not change; increases C) decreases; decreases D) increases; increases E) decreases; does not change
Economists tend to believe the most efficient way to induce environmental protection is through
a. standards that control economic activities b. government provision of environmentally sensitive goods and services c. market-based incentives such as taxes and subsidies d. economic planning e. none of the above
A budget surplus is
A. An excess of government spending over government revenues in a given time period. B. Used only in time of war. C. An excess of government revenues over government expenditures in a given time period. D. None of the choices are correct.
Fluctuations in economic performance is one of the two basic issues of macroeconomics. The other is:
A. tracking unemployment. B. keeping interest rates in check. C. long-run economic growth. D. monitoring inflation rates.