Why net inventory increases are counted as part of gdp

Assignment Help Econometrics
Reference no: EM131228186

(Investment) In national income accounting, one component of investment is net changes in inventories. Last year's inventories are subtracted from this year's inventories to obtain a net change. Explain why net inventory increases are counted as part of GDP. Also, discuss why it is not sufficient to measure the level of inventories only for the current year. (Remember the difference between stocks and flows.)

Reference no: EM131228186

Questions Cloud

What is the value of net domestic product : (Expenditure Approach to GDP) Given the following annual information about a hypothetical country, answer questions a through d.
What is the discount rate for stock : Suppose Company X issues a common stock with current dividend as $1.62/per share. The expected growth rate for the dividends is said to be 2.5%. Let the current market price of the stock be $16.25/per share. a) What is the discount rate for this s..
Prepare the consolidation journal entries for intra-group : On 1 July 2011, Parent Ltd acquired 100% of the share capital of Son Ltd for $ 1,000,000. Prepare the consolidation journal entries for intra-group transactions at 30 June 2015
Discuss the role of pro forma disclosures : Discuss the role of pro forma disclosures such as the ones provided by Apple in capital markets. Also discuss the trade-offs (faced by regulators) between granting managers flexibility so as to reflect the economic reality of innovative products a..
Why net inventory increases are counted as part of gdp : Explain why net inventory increases are counted as part of GDP. Also, discuss why it is not sufficient to measure the level of inventories only for the current year. (Remember the difference between stocks and flows.)
How your chosen method of calculating product cost : ACC/ACF2200 Introduction to Management Accounting Assignment. Using the detail in the case, describe how your chosen method of calculating product cost will be beneficial within Mal Ltd. and have relevance to management
Consider the nmos circuit in figure : Consider the NMOS circuit in Figure. - Determine vO when vX = vY = 2.9 V. -  What are the values of vGSX , vGSY , vDSX , and vDSY?
Monthly mortgage payment : a) What will your monthly mortgage payment be? b) Create an amortization table the at shows the first 5 months of payments, how much goes towards interest and principle, and the outstanding balance
The nmos circuit in given : In the NMOS circuit in Figure, the transistor parameters are: - Determine vO when vX = vY = 5 V. -  What are the values of vGSX , vGSY , vDSX , and vDSY ?

Reviews

Write a Review

Econometrics Questions & Answers

  Which independent variable has the smallest affect on gpa

It has been hypothesized that overall success for college freshmen as measured by grade point average (GPA) is a function of IQ scores (X1), hours spent studying each week (X2), and one's high school average (X3). Suppose the regression equation i..

  What is the market structure of the firm

You are a manager of a firm with a following demand and cost functions in a perfectly competitive market. The price in your market is $35. Your total cost curve is: TC = 10 + 2Q + 0.5Q^2

  Construct brandywine''s 2007 income statement

Suppose the change had halved, rather than doubled, the firm's depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow?

  What happens when the fed monetizes a budget deficit

What happens when the Fed monetizes a budget deficit? Is this something it should always try to do? ( Hint: Outline the benefits and costs of such a policy over time.)

  In 1984 walt disney brought in michael eisner a paramount

in 1984 walt disney brought in michael eisner a paramount executive as ceo. the firms board of directors agreed to pay

  Estimate the purchase price for the new boiler

The purchase price of a natural gas- fired commercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optio..

  What is the maximum loan that the bank could extend

what is the maximum loan that the bank could extend. indicate how the banks balance sheet would be altered if it extended this loan. suppose that the required reserves were 20 percent. if this were the case, would the bank be in a position to extend..

  What were the warning signs of financial decline

What types of strategies and actions could the board of directors initiate which could have changed the outcome?

  What do you think of such a proposal

Do you think these phenomena are related? Could higher wages and better job opportunities lead to a more capital-intensive way of performing household chores? Explain.

  What is the minimum value per hour placed on ones time

The state highway route has a 30% chance of taking 4 hours, a 50% chance of taking 5 hours, and a 20% chance of taking 6 hours. All other factors being the same, people who place a higher valueon time.

  Which way do we shift the demand curve why

which way do we shift the demand curve? Why?

  What are the three basis questions that societies answer

A household's decision about what quantity of an output or product to demand depends on a number of factors. List them.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd