In One Year, a Firm Increases Its Production by $9

question 110

Multiple Choice

In one year, a firm increases its production by $9 million and increases sales by $8 million. All other things in the economy remaining the same, which of the following is true?

• A)GDP increases by $8 million and inventory investment decreases by $1 million.
• B)Inventory investment decreases by $1 million.
• C)GDP increases by $9 million and inventory investment increases by $1 million.
• D)GDP increases by $17 million.
• E)GDP increases by $8 million and investment increases by $1 million.

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