Asked by Pamela Hernandez on Jun 09, 2024
Verified
A newspaper article informs you that most businesses increased production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely
A) decreased.
B) increased.
C) stayed the same.
D) may have increased, decreased, or stayed the same.
Inventories
The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.
GDP
The total value of all end products and services created within a country's borders during a certain time frame defines Gross Domestic Product.
Production
The process of creating goods or services by combining labor, capital, and raw materials in order to meet consumer demand.
- Gain insights into the structure and components of Gross Domestic Product (GDP), and its value as a gauge for economic health.
Verified Answer
CA
Cassandra AeschlimanJun 14, 2024
Final Answer :
B
Explanation :
GDP likely increased because the production increase contributes to GDP, and selling from inventories indicates goods produced in previous periods are being sold, which also reflects economic activity.
Learning Objectives
- Gain insights into the structure and components of Gross Domestic Product (GDP), and its value as a gauge for economic health.