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17 June, 17:12

Additions to inventory are

a. counted as a component of investment spending.

b. counted as an intermediate input.

c. subtracted from sales revenue in calculating profit income.

d. not counted as an expenditure in GDP accounting.

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Answers (1)
  1. 17 June, 18:03
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    a. counted as a component of investment spending.

    Explanation:

    Inventory is A comprehensive list of stuff such as assets, in-store merchandise or the building's contents. investment spending include investments such as equipment, property, manufacturing inputs or facilities. Investment spending must not be mistaken for investments which relates to buying financial instruments.
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Home » Business » Additions to inventory are a. counted as a component of investment spending. b. counted as an intermediate input. c. subtracted from sales revenue in calculating profit income. d. not counted as an expenditure in GDP accounting.
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