When real GDP increased in the first quarter of 2017, businesses accumulated $12.2 billion in inventories, following

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When real GDP increased in the first quarter of 2017, businesses accumulated $12.2 billion in inventories, following a decrease of $2.8 billion in the previous quarter. Explain how a fall in business inventories influences aggregate demand.

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Macroeconomics

ISBN: 978-0134853307

10th Edition

Authors: Michael Parkin

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Question Posted: Feb 26, 2024 04:00 AM

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When real GDP increased in the first quarter of 2017, businesses accumulated $12.2 billion in inventories, following

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When business inventories fall it can influence aggregate demand in two ways 1 Increased Production ...View the full answer

Macroeconomics

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