New Home Construction Is Included in the Consumption Component of GDP

question 120

True/False

New home construction is included in the consumption component of GDP.

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Definitions:

Materials Requirements Planning

A system used in manufacturing to calculate materials needed for production, ensuring the right materials are available at the right time and in the correct quantities.

Inventory Levels

The amount of goods and materials a company holds for the purpose of resale or production.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of its customers and the terms of credit to extend.

Creditworthy

Describes a borrower who is deemed likely by lenders or creditors to repay debt obligations based on their financial health and previous repayment history.