An article on bloomberg.com in 2019 discussed revised GDP data from the Japanese government that showed a
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An article on bloomberg.com in 2019 discussed revised GDP data from the Japanese government that showed a larger increase in real GDP: “Part of the upward revision was due to a change in estimated inventories, while private consumption rose less than first estimated.”
a. Is the change in estimated inventory investment likely to have been an increase or a decrease? Briefly explain.
b. Is there a connection between the revised estimate for the change in inventory investment and the revised estimate for consumption spending? Briefly explain.
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