Economics · National Income Accounting
Consider the following statements regarding inventories: (a) Inventories are a stock variable. (b) Change in inventories is a flow variable. (c) Increase in inventories is treated as investment. (d) Total accumulation of inventories is completely excluded from GDP. Which of the statements given above are correct?
- 1(a), (b) and (c)✓
- 2(a) and (d) only
- 3(b), (c) and (d)
- 4(a), (b), (c) and (d)
Correct answer
(a), (b) and (c)
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