Inventory Investment Is Included as a Spending Item When Computing

question 3

Multiple Choice

Inventory investment is included as a spending item when computing GDP because

• A)GDP is meant to be a measure of total sales.
• B)of a historical accident.
• C)it is the same as plant and equipment investment.
• D)not everything produced in a given time period is sold during that time period.
• E)there would otherwise be double counting.

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Definitions:

Hangover Effect

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A theory suggesting that employees' disengagement from their jobs follows a sequential pattern, starting from minor behaviors like lateness to more severe ones like quitting.

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The rate at which employees leave a company and are replaced by new hires.

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