Ayushi posted an Question
August 24, 2020 • 20:26 pm 30 points
  • UGC NET
  • Economics

65. "high demand in this year's economy caught producers unaware, forcing their inventories to absorb this demand." how does this inventory change appcar in the

65. "High demand in this year's economy caught producers unaware, forcing their inventories to absorb this demand." How does this inventory change appcar in the GDP calculation when adding up all expenditures? (1) It is added when measuring GDP, as an element of investment demand (2) It is added when measuring GDP, as an element of consumption demand (3) It is subtracted whern measuring GDP, as an element of investment demand (4) It is subtracted when mcasuring GDP, as an element of consumption demand

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    Nidhi taparia Best Answer

    I asked my professor about it and option (3) is the correct one, according to him.

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