If the Economy Adds to Its Inventory of Goods During

question 191

Multiple Choice

If the economy adds to its inventory of goods during some year,

• A) gross investment will exceed net investment by the amount of the inventory increase.
• B) this amount should be ignored in calculating that year's GDP.
• C) this amount should be subtracted in calculating that year's GDP.
• D) this amount should be included in calculating that year's GDP.

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Definitions:

Market Research

The method of collecting, assessing, and understanding data concerning a market, which involves information on prospective customers and rivals.

Raises

Increases in an employee's base salary or wage rate, often awarded for performance, promotion, or inflation adjustments.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Strengths

Attributes of an individual or organization that are beneficial and can be leveraged to achieve goals and overcome challenges.