If these were the given choices:
A) They will be included in the nondurable consumption
category of GDP.
B) They will be included in the residential investment
category of GDP.
C) They will be included in the government spending
category of GDP.
D) They will be included in the inventory investment
category of GDP.
E) They will be included in the durable consumption
category of GDP.
My answer is: <span>D) They will be included in the inventory investment category of GDP.</span>
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<span>GDP stands for Gross Domestic Product. It is the monetary value of all the finished goods and services produced in a given period within a country. These monetary value is equivalent to the current market price of said finished goods and services. </span>
Orange Fund with Year 1 return of 0% & Year 2 return of 0%.
Countries gain from exchange when trade enables each country to receive a higher price for exported goods and/or pay a lower price for imported goods. This leads to more efficient resource allocation and allows consumption of a larger variety of goods.International trade is where there is exchange of goods and services across International territories where in most countries this exchange represents a significant a share of gross domestic product(GDP). One of the most immediate benefits of this trade is lower costs to consumers
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Net operating income equals (unit sales - unit sales to break even) × unit contribution margin.
What is net operating income?
Real estate professionals utilize the metric known as Net Operating Income, or NOI, to swiftly determine the profitability of a certain venture. After deducting required operational costs, NOI calculates the revenue and profitability of investment real estate property.
Is net operating income the same as profit?
After all, costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses. Contrarily, net income is the profit that is still left over after all expenses made during the time have been deducted from sales revenue.
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Answer:
The correct answer is option B.
Explanation:
A recessionary gap implies that the resources are not being fully utilized. This means resources are being wasted.
An expansionary gap, on the other hand, means that the economy is producing at more than potential level. The price level at this point is high. There is a tendency for inflation to develop in this situation.
To curb the recessionary gap the economy can adopt the expansionary fiscal and monetary policy. While to curb expansionary gap, contractionary monetary and fiscal policy can be adopted.