The U.S. Commerce Department reported that wholesale inventories rose 0.7 percent in May and by 0.6 percent
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The U.S. Commerce Department reported that wholesale inventories rose 0.7 percent in May and by 0.6 percent in June. Inventory investment had a neutral effect on second quarter GDP growth.
Explain why an increase in inventories might bolster economic growth, while a fall in inventories might be a sign of recession. In your explanation, distinguish between planned and unplanned changes in business inventories.
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Changes in Inventories and Economic Growth Inventory changes can have a significant impact on economic growth but the effect depends on whether the ch...View the full answer
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