Unintended Changes in Inventories

question 26

Multiple Choice

Unintended changes in inventories

• A) cause the economy to move away from the equilibrium GDP.
• B) are treated as components of consumption.
• C) bring actual investment and saving into equality only at the equilibrium level of GDP.
• D) bring actual investment and saving into equality at all levels of GDP.

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Definitions:

Fiberglass Cast

A lightweight and durable cast made of fiberglass material used to immobilize and support broken or injured limbs.

Plaster of Paris

A quick-setting gypsum plaster consisting of a fine white powder, which hardens when moistened and allowed to dry.

Elevate Casted Arm

The practice of raising an arm with a cast above the level of the heart to reduce swelling and pain.