Asked by Jessica Leigh on May 22, 2024
Verified
Which of the following is not true?
A) Inventory investment is very unstable.
B) The purchase of inventory is considered an investment in calculating GDP.
C) Inventory investment can be negative or positive.
D) The purchase of software is considered an investment in calculating GDP.
E) During severe recessions,inventory investment is positive.
Inventory Investment
The change in the total value of unsold goods and materials held by businesses over a specific period.
GDP
Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
- Recognize the components of investment in the context of calculating GDP.
Verified Answer
HN
Hu?nh NhungMay 22, 2024
Final Answer :
E
Explanation :
During severe recessions, inventory investment is typically negative, as businesses try to reduce their stockpiles of unsold goods.
Learning Objectives
- Recognize the components of investment in the context of calculating GDP.
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