Changes in the stocks of finished goods and goods in process as well as changes in the raw materials that businesses keep on hand is known as
A. fixed investment.
B. inventory investment.
C. the income approach.
D. the expenditure approach.
Answer: B
You might also like to view...
The aggregate demand curve shows
A) a direct relationship between changes in the price level and changes in real GDP. B) real GDP does not change as the price level changes. C) an inverse relationship between the price level and real GDP. D) an inverse relationship between changes in the price level and changes in nominal GDP.
If Herbert, the hair stylist, raises the price of his cuts from $13 to $15 and finds the number of cuts falls from 300 to 260, then the demand for Herbert's cuts in this range is:
a. price inelastic. b. price elastic. c. unit elastic. d. cross elastic. e. income inelastic.
Economists view shifts of supply and demand as
a. unusual events that call for government intervention b. unusual events resulting from the failure of the price to fall c. normal and frequent events d. normal and frequents events that do not affect equilibrium prices e. normal and frequent events that result from government intervention
The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession.
Answer the following statement true (T) or false (F)