Question:

Economics question???

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If households purchase $60,000 worth of consumer goods and firms produce $50,000 worth of consumer goods, then

A. inventory changes are -$10,000

B. inventory changes are +$10,000

C. new capital goods expenditures(by firms) are $10,000

D. consumer goods expenditures are $10,000

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1 ANSWERS


  1. I'll do half your work: it's not C or D.

    Now think about whether inventory went up or down as people bought more than was made to replace it.

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