Question

When, at the end of a year, the inventories in a flour mill business are $10,000 above what they were at the beginning of the year: a It's counted in G (government spending) b It isn't counted. c It's counted in I (investment spending) d It's counted in Xn (net exports) e It's counted in C (consumer spending)

Answer 1

Answer:

. c It's counted in I (investment spending) 

Explanation:

Inventories purchased by businesses is included in investment spending when calculating GDP.

Investment spending includes all investments made by businesses e.g. purchasing equipment

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