An article in the Wall Street Journal in 2019 reported that “gross domestic product . . . rose at a 3.2% annual rate from January through March, the strongest rate of first-quarter growth in four years.” The article also reported that “inventory investment . . . contributed strongly to U.S. growth, a factor that could dent the second quarter if companies draw down on their stockpiles rather than place new orders.”

a. Is it likely that the article was reporting the increase in nominal GDP or in real GDP? Briefly explain. 

b. What is inventory investment? How does it contribute to growth? 

c. What variable might be “dented” in the second quarter? Explain why this variable might be dented because inventories were increasing.