During the Third Quarter of This Year a Firm Produces

question 23

Multiple Choice

During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory. During the fourth quarter of this year, the firm sells the goods at a retail outlet, with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter. These actions affect which components) of fourth-quarter GDP?

• A) they increase consumption and have no effect on investment
• B) they increase consumption and decrease investment
• C) they have no effect on either consumption or investment
• D) they have no effect on consumption and decrease investment

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Definitions:

Unmyelinated

Pertaining to nerve fibers that lack a myelin sheath, which means they conduct nerve impulses more slowly than myelinated fibers.

Injury Pain

Discomfort or an unpleasant feeling often caused by intense or damaging stimuli associated with physical harm or damage to the body.

Olfactory Receptors

are specialized neural receptors in the nose involved in the detection of odor molecules.

Odorants

Chemicals that are capable of eliciting an olfactory response, meaning they have properties that allow them to be smelled.