In early 2018 businesses bought more inventory, increasing GDP. What would happen

Business

1 answer:

puteri [66]3 years ago

4 0

Answer:

If a company increases its final goods inventory level, that will increase the country's GDP even if the goods are not sold during the current period (they will be sold in future periods). Increases in inventory level are considered part of Investment component of the GDP.

If the inventories are not sold during the year (2018) and if they continue to be unsold during part of 2019, that will negatively affect the GDP because fewer goods will be purchased to replenish these inventories and the market price of the goods will also decrease. The market price of goods is determined by the supply and demand. If the supply is much higher than the demand and inventories start to pile up, their price will decrease in order to increase the quantity demanded. If the volume of the goods in inventory is significant enough, this should lower the inflation rate.

You might be interested in

ssuming all else is constant, which of the following statements is CORRECT? a. A 20-year zero coupon bond has more reinvestment

Maru [420]

Answer: b. For a bond of any maturity, a 1.0 percentage point increase in the market interest rate (rd) causes a larger dollar capital loss than the capital gain stemming from a 1.0 percentage point decrease in the interest rate

Explanation:

This is very true. If market rates reduce by 1.0%, there is a larger drop in the price of a bond than the amount a bond gains in price if interest rates increase by that same 1.0%.

This is why the graph that relates bond prices to yield is concave and I attached a graph as proof.

Notice how the fall in price is greater when interest rate increases.

5 0

3 years ago

In relationship-based marketing, the focus is on enticing a buyer to make a purchase now based on such factors as low price, con

andrey2020 [161]

Answer: false

Explanation:

Relationship marketing looks at using customer service and quality of service as benchmarks in the companies marketing activities. They are developed at looking at lifetime relationship with clients. They are not about low price, convenience, packaging, or similar inducements now, these are factors for gaining a new client.

8 0

3 years ago

mylen [45]

The answer is B: compound interest

3 0

3 years ago

The CEO from headquarters has just arrived. You make some opening comments and she replies, "I'm glad to be here. I look forward

ddd [48]

Answer: Incongruent communication

Explanation: In simple words, incongruent communication refers to the type of communication in which the non verbal actions of the communicator does not match with what exactly he or she is conveying verbally.

Such kind of message confuses the receiving end party as how he or she should understand and accept the message.

In the given case, the CEO has been making statement that she is willing to talk to everybody which depicts that she has a lot of time but at the same situation she is looking at her watch which show she has some deadline.

Hence we can conclude that the given case depicts Incongruent communication.

5 0

3 years ago

What form of business ownership would you recommend to Alison and why?

irina [24]

Answer:

Sole ownership will be the best for the coffees business

Explanation:

This is because opening a coffee shop comes with the individual usually having a very great deal of passion for it. The recipes for the coffee would also be best suited to a person who prepares it in his/her unique way.

The coffee shops mostly comes with a reasonably average degree of profitability and lower risks due to a low degree of wastage or spoilage and it being very easy to make so it’s best owned by a single person to cut cost and avoid profit sharing .

4 0

3 years ago