Want to know:
An article on bloomberg.com stated that "inventories gave GDP a small boost."Source: Katia Dmitrieva, "U.S. GDP Grows at 2.6% Pace as Business Spending Accelerates," bloomberg.com, February 28, 2019.For this result to occur, is it likely that inventories increased or decreased? Briefly explain.A.Increased, since inventories are part of a firm's investment, which is a component of GDP, inventories must have risen.B.Increased, because firms earned profits on their inventories, which would raise inventory investment.C.Decreased, because inventories represent goods that firms did not sell, indicating a loss to inventory investment.D.This cannot be determined since there is no direct relationship between inventory changes and GDP growth.
Get a detailed, AI-powered explanation for this question and thousands more on StudyFetch.
Get the Answer for FreeHow StudyFetch Helps You Master This Topic
AI-Powered Answers
Get instant, detailed explanations powered by AI that understands your course material.
Deep Understanding
Go beyond surface-level answers with step-by-step breakdowns and examples.
Personalized Learning
Sparky adapts to your learning style and helps you connect ideas.
Practice & Test
Turn any question into flashcards, quizzes, and practice tests to solidify your knowledge.
Explore More Questions
- Those who believe people should be taxed according to their ability to pay would most likely favor...- A progressive income tax- A general sales tax- A residential property tax- A excise tax
- If the nominal GFP is 15 trillion, and the price index is 150 then the real GDP is?
- The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of increasing average capital productivity.