A Firm Produces Consumer Goods and Adds Some to Inventory

question 155

Multiple Choice

A firm produces consumer goods and adds some to inventory in the third quarter. In the fourth quarter the firm sells the goods at a retail outlet, leaving the firm's inventory diminished. As a result of these actions, what component(s) of GDP change in the fourth quarter?

• A)only investment and it decreases
• B)only consumption and it increases
• C)investment decreases and consumption increases
• D)neither investment nor consumption changes

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Definitions:

Control Sources

The origins or mechanisms through which authority or regulation is exercised.

Stress Response

The body's reaction to a challenge or demand, often involving physiological, emotional, or behavioral changes.

Stress Management

Techniques and strategies used to handle stress and reduce its negative impacts on physical and mental health.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, anxiety, and other symptoms.