Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion

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Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008? Explain.

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:52 AM

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Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion

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Anything produced by business that has not been sold during the accounting period is something in wh...View the full answer

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