Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Factory orders fell 4 percent in March The Commerce Department reported orders for manufactured goods decreased 4 percent, with nondurable goods falling 2.4 percent and

Factory orders fell 4 percent in March The Commerce Department reported orders for manufactured goods decreased 4 percent, with nondurable goods falling 2.4 percent and durable goods falling 5.8 percent, while business inventories of durable goods increased 0.9 percent. Source: The Wall Street Journal, May 3, 2013 Which component of GDP changes when sales of (i) nondurable goods fall and (ii) durable goods fall, and (iii) inventories of durable goods increase? Provide an example of each item of expenditure. Question content area bottom Part 1 When sales of nondurable goods fell, _______ decreased. An example of a nondurable good is _______. A. investment; a boat B. consumption expenditure; an iPhone C. consumption expenditure; a computer purchased for a member of Congress D. investment; an iPhone E. consumption expenditure; a cup of coffee

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Business And Economics

Authors: Paul Newbold, William Carlson, Betty Thorne

8th Edition

9780132745659

Students also viewed these Accounting questions