Why are changes in inventories included as part of investment spending? Suppose inventories decline by $1 billion

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Why are changes in inventories included as part of investment spending? Suppose inventories decline by $1 billion during 2022. How would this $1 billion decrease affect the size of gross private domestic investment and gross domestic product in 2022? Explain.

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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