(Answered) During the last month of 2010 a firm produces consumer

Management Studies

During the last month of 2010, a firm produces consumer goods but does not sell everything to consumers. The unsold portion is added to its inventory. In January 2011, the firm sells all the goods to consumers.

a. In January 2011, how is the 'consumption' component of GDP affected?

b. In January 2011, how is the 'investment' component of GDP affected? Note: your answer should be 'increase', 'decrease', or 'not affected'.

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Business Management, Management Studies

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