ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In one year, a firm increases its production by $9 million and increases sales by $8 million. All other things in the economy remaining the same, which of the following is true?
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Inventory investment decreases by $1 million.
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GDP increases by $8 million and investment increases by $1 million.
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GDP increases by $17 million.
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GDP increases by $8 million and inventory investment decreases by $1 million.
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GDP increases by $9 million and inventory investment increases by $1 million.
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Explanation:
Detailed explanation-1: -When the average price level increases by 10 percent in a given year, which of the following must increase by 10 percent for real output to remain constant? inflation and unemployment.
Detailed explanation-2: -Generally, there are 3 different types of growth that take place in an economy. There is the trend growth, potential growth, and actual growth.
Detailed explanation-3: -Economists use many different methods to measure how fast the economy is growing. The most common way to measure the economy is real gross domestic product, or real GDP. GDP is the total value of everything-goods and services-produced in our economy.
There is 1 question to complete.