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DIA [1.3K]
3 years ago
5

A manufacturer produces 500,000 MP3 players in the first quarter of the year. It sells 400,000 of them and adds 100,000 of them

to inventory. All the players added to inventory are purchased by consumers in the second quarter. How are the 100,000 that go into inventory counted in GDP?
Business
1 answer:
Digiron [165]3 years ago
3 0

Answer:

$100,000 is accounted in first quarter GDP as change in inventory

Explanation:

Changes in inventory is accounted in the current period GDP as it is an investment. It is a part of gross private investment of GDP. Changes in inventory happens when closing inventory differs from opening inventory.

When sales are more than goods produced, it indicates that the company has purchased its own inventory for investment purpose.

In this case $100,000 inventory in quarter 1 would be included in quarter 1 GDP as part of private investment.

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Answer:

Decrease is taxes

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Explanation:

Government policies that increases the money supply in an economy is known as expansionary fiscal policy. They are:

1. Decrease is taxes - when government reduces the tax rate, the amount paid as taxes falls and as a result individuals, companies have higher disposable income whuch can be used for consumption or saving. This increases the money supply in the economy.

2. Increase in government spending - if the government increases it's spending on public goods for example, money supply would increase. If the government constructs a road, labour would be employed and paid wages. This payment increases the income of Labour and money supply increases.

Central bank policies that increases money supply are known as expansionary monetary policies. They include:

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Firm ABC sells 1000 units of widgets for $10 per unit per-week. Per-week it pays its employees $1500, rent $2000, materials $100
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C

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Credit risk measures using the structural model: assume a company has the following characteristics.
Alexeev081 [22]

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

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please kindly refer to attachment.

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