In Calculating the GDP, National Income Accountants

question 135

Multiple Choice

In calculating the GDP, national income accountants

• A) treat inventory changes as an adjustment to personal consumption expenditures.
• B) ignore inventories because they do not represent final goods.
• C) subtract increases in inventories or add decreases in inventories.
• D) add increases in inventories or subtract decreases in inventories.

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Definitions:

Company Income Statement

A financial report that shows a company's revenues, expenses, and profit over a certain period of time.

Operations Management

The field of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Employment Agencies

Employment agencies are organizations that match employers looking to hire with individuals seeking employment, facilitating job placements across various industries.

Professional Organizations

Groups or associations that are formed to advance a specific profession and to serve the interests of its members.