Suppose that a sporting goods store had 800 of golf balls on its shelves at the beginning of 2016 and 1,300 at the end of 2016. The amount of inventory investment included in GDP would be
A) 500. B) 800. C) 1,300. D) 2,100.
Question 2
Cost-push inflation is
A) inflation caused by decreases in aggregate supply that generate an even larger decrease in aggregate demand.
B) inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply.
C) inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply.
D) inflation caused by decreases in aggregate supply that are not matched by decreases in aggregate demand.
Put two tennis balls in a sock, then tie a knot in the end of the sock to hold the balls together.
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