Question

Changes in inventories are included as part of investment spending because multiple choice 1 anything produced by a business that has not been sold during the accounting period is something in which the business has invested. anything produced by a business that has not been sold during the accounting period is something in which the business has consumed. anything produced by a business that has been sold during the accounting period is something in which the business has invested. anything produced by a business that has been sold during the accounting period is something in which the business has consumed. b. If inventories decline by $1 billion during 2022, then $1 billion would be multiple choice 2 subtracted from both gross private domestic investment and gross domestic product. subtracted from gross private domestic investment and added to gross domestic product. added to gross private domestic investment and subtracted from gross domestic product. added to both gross private domestic investment and gross domestic product.

Answer 1

A)Changes in inventories are included as part of investment spending because anything produced by a business that has Anything produced by a business that has not been sold during the accounting period is something in which the business has invested

B)If inventories declined by $1 billion during 2012, then $1 billion would be subtracted from both gross private domestic investment and gross domestic product.

Step-by-step explanation:

A) All inventories that Businesses could have is expected to be utilized by the business. Example of this is that Iron sheet that a business could use in making new Factory building or a pack of toiletries in the shelf in supermarket are both asset as regards to the business and they are things that are been invested by the business.

B)Declination in inventories symbolize that produced goods in previous years has been used up in production of current year. In the case that that the stated $1 billion is not deducted, then there would be need to count the produced goods that was produced in previous year as been produced in 2022