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Phenomenon described as a dangerous imbalance

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Reference no: EM131209846

GDP grew at a much faster 4.8 percent rate in the October-December quarter, but analysts said that growth masked some dangerous imbalances that were not present in the first-quarter report. Almost all of the fourth-quarter increase in GDP wound ups unsold inventory sitting on shelves.

a. If it doesn't get sold, how could it get counted into GDP?

b. Why is this phenomenon described as a "dangerous imbalance"?

Reference no: EM131209846

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