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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
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