andrewchilders9800 andrewchilders9800
  • 26-02-2020
  • Business
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Inventories are part of investment and therefore included in gdp because

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tutordamola
tutordamola tutordamola
  • 27-02-2020

Answer:

Explanation:

Inventories are part of investment and therefore included in GDP because firms produce goods and these goods may be unsold at the time GDP is computed

The value added method of calculating GDP recognizes inventory. Value added from raw materials to work in process and to finished goods are part of what goes into the computation of GDP

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