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Author Question: How are changes in inventory treated in GDP? What will be an ideal ... (Read 59 times)

renzo156

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on: Jun 29, 2018
How are changes in inventory treated in GDP?
 
  What will be an ideal response?

Question 2

If a sum of 15,000 is borrowed at 13 for a year, the interest paid by the borrower is ________.
 
  A) 750
  B) 1,000
  C) 1,950
  D) 5,500


coreycathey

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Reply #1 on: Jun 29, 2018
Answer to Question 1

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.

Answer to Question 2

C


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