In 2016, GDP Was Exactly Equal to Final Sales

question 191

Multiple Choice

In 2016, GDP was exactly equal to final sales. This implies that

• A) there was accumulation of inventories that year.
• B) there was a decline in inventories that year.
• C) there was no change in inventories that year.
• D) GDP did not grow that year compared to the year before.

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Definitions:

Policy Change

Modifications or alterations to policy typically made by governing bodies in response to societal needs, economic conditions, or political pressures.

Loanable Funds

The capital available for borrowing, determined by the supply of savings and the demand for investment within an economy.

Loanable Funds

Money available for borrowing, which consists of savings that banks and other financial institutions can lend to businesses and individuals.

Policy Change

A policy change refers to alterations made to existing laws, regulations, or guidelines by governments, institutions, or organizations, aiming to address specific issues or improve outcomes.