Question: Can you help me solve this question please. Question 2 (6 marks) When real GDP increased in the first quarter of 2017, businesses accumulated $12.2

Can you help me solve this question please.

Question 2 (6 marks)

When real GDP increased in the first quarter of 2017, businesses accumulated $12.2 billion in inventories, following a decrease of $2.8 billion in the previous quarter.

Source: Statistics Canada, May 31, 2017

Explain how a fall in business inventories influences aggregate demand.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!