Question
Book Icon
Chapter 12, Problem 12.1.8PA
To determine

The change in the inventories.

Blurred answer
Students have asked these similar questions
U.S. business inventories increase Business inventories in the United States rose​ 0.4% in July after no change in the prior month. An increase in inventories adds to gross domestic product while a decrease subtracts from it. ​Source: U.S. Department of​ Commerce, September​ 13, 2019   Explain why an increase in inventories adds to gross domestic product but why it matters whether an increase in inventories is planned or unplanned. A planned increase in inventories​ _______.     A. decreases​ investment, which decreases equilibrium expenditure and real GDP   B. increases​ investment, which increases equilibrium expenditure and real GDP   C. shifts the AE curve upward​, so firms decrease production and real GDP decreases to reach equilibrium expenditure   D. shifts the AE curve downward​, so firms decrease production and real GDP decreases   E. increases consumption​ expenditure, which increases equilibrium expenditure and real GDP   An unplanned increase…
Which of the following correctly describes how a decrease in the price level affects consumption spending? Select one: a. A decrease in the price level raises real wealth, which causes consumption to increase. b. A decrease in the price level decreases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. c. A decrease in the price level increases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. d. A decrease in the price level lowers real wealth, which causes consumption to decrease.
im having a little toruble with the following question and answer: The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent. ​Source: Commerce​ Department, 2013   Does the statement that total sales by businesses were up 0.3 percent mean that GDP increased by 0.3​ percent?   The statement that total sales by businesses were up 0.3 percent means that GDP​ ______ because​ ______.     A. did not change by 0.3​ percent; GDP measures production of all final goods and services and​ "total sales by​ businesses" includes final and intermediate goods and services   B. increased by 0.3​ percent; GDP is a record of the value of all production   C. decreased by 0.3​ percent; ​"total sales by​ businesses" are sales of intermediate goods and services   D. increased by less than 0.3​ percent;…

Chapter 12 Solutions

MyEconLab Canvas with eText for Macroeconomics with Custom Integration for University of South Florida -- Standalone Access Card, 1/e

Knowledge Booster
Background pattern image
Recommended textbooks for you
  • Text book image
    Economics:
    Economics
    ISBN:9781285859460
    Author:BOYES, William
    Publisher:Cengage Learning
    Text book image
    Economics (MindTap Course List)
    Economics
    ISBN:9781337617383
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Text book image
    Macroeconomics
    Economics
    ISBN:9781337617390
    Author:Roger A. Arnold
    Publisher:Cengage Learning
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Macroeconomics
Economics
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Cengage Learning