Explain why net inventory increases are counted as part of


(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.)

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Explain why net inventory increases are counted as part of
Reference No:- TGS01622230

Expected delivery within 24 Hours