An Increase in Business Inventories During a Time Period,ceteris Paribus,will

question 121

Multiple Choice

An increase in business inventories during a time period,ceteris paribus,will

• A)Decrease GDP during that period.
• B)Increase GDP during that period.
• C)Not affect GDP during that period but will increase GDP in later periods when the inventory is sold.
• D)Never affect GDP because changes in inventories are not included in the calculation of GDP.

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Definitions:

Profit-Maximizing Quantity

The point of production where a firm reaches its maximum profit potential.

Panel

A group of individuals or experts gathered to discuss, analyze, or make decisions on specific subjects.

Intersection

The point at which two lines or paths cross each other.

Economic Loss

The difference between the cost of inputs and the revenues received from outputs, indicating a negative outcome in financial performance.