Consider the Investment Component (I)of GDP

question 26

Multiple Choice

Consider the investment component (I) of GDP.To calculate the change in the value of inventories for the investment component of GDP,one should use their

• A)cost of production at the time they were produced.
• B)cost of production minus the costs of labour and capital.
• C)current market value.
• D)market value at the time they were produced.
• E)market value at the time they were added to inventory.

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Definitions:

Real GDP

The measure of a country's gross domestic product adjusted for inflation, reflecting the value of all goods and services produced at constant prices.

Equity Finance

A method of raising capital through the sale of shares in a company, representing ownership interests in the corporation.

Investment

The allocation of resources, typically money, into ventures, stocks, or assets with the expectation of generating a profit.

Types of Saving

Various forms in which individuals or entities can save their money, such as bank deposits, investments, or pension funds.