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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

A business firm produces a good this year that it doesn’t sell. As a result, the good is added to the firm’s inventory. How does this inventory good find its way into GDP?

To determine

Explain how the inventory good find its way into GDP.

Explanation

In general, the gross private domestic investment (I) includes the inventory investment and fixed investment. In this case, a business fir...

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