If a firm's inventory decreases,the gross domestic product (GDP)also decreases.

Inventory Decreases

A reduction in the quantity of goods that a company has in stock, typically indicating increased sales or reduced production.

Gross Domestic Product

The total market value of all goods and services produced within a country in a specific time period.

Decreases

The reduction in size, number, or amount of something over a period of time.

Acquire knowledge on the role of investment in Gross Domestic Product discussions and how modifications in stock levels influence the determination of GDP.

Verified Answer

Final Answer :

True

Explanation :

A decrease in inventory would lower the value of goods produced and sold, which would decrease the GDP.

Learning Objectives

Acquire knowledge on the role of investment in Gross Domestic Product discussions and how modifications in stock levels influence the determination of GDP.