Do inventories act as a leading indicator of rgnp here

Reference no: EM131482653

Question: 1. Which is more inflationary in the short run, investment spending or government spending? Which is more inflationary in the long run, investment spending or government spending? Explain.

2. Use inventory analysis to explain how the economy would adjust to an increase in aggregate supply and to a decrease in aggregate supply. Do inventories act as a leading indicator of RGNP here? Explain.

Reference no: EM131482653

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