Explain why are changes in inventories included as part

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Q. If David and Ellen live in rent-controlled apartments, what is the equilibrium price for the non-rent-controlled apartments?

Q. Explain why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008? Explain.

 

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