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If inventory investment is positive, would you forecast that GDP will be increasing, decreasing or remaining...

If inventory investment is positive, would you forecast that GDP will be increasing, decreasing or remaining the same?

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Answer #1

Answer : The answer is "GDP will increase".

Inventory investment is a component of GDP. Positive inventory investment means that the inventory investment increases. If inventory investment increase then GDP increase. Because if inventory investment increase in a particular year then the production level increase for that year. And GDP include the market value of all domestically produced final goods and services for a given year. Hence if inventory investment increase then GDP increase.

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