Suppose That Inventories Are Rising

question 75

Multiple Choice

Suppose that inventories are rising.We can expect that, in the future,

• A)real GDP will likely increase
• B)real GDP will likely decrease.
• C)real GDP could increase or decrease, as its direction cannot be predicted based on inventories.
• D)firms will raise prices of their goods and services.

---

Definitions:

Phenomenological Theory

A philosophical approach focusing on individuals' subjective experiences and interpretations of the world.

Subjectivity

The influence of personal feelings, tastes, or opinions on perception or judgment.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Labeling Theory

A sociological theory suggesting that deviance and conformity result not so much from what people do, but from how others respond to those actions.