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Inventory levels
Assessing Inventory Fluctuations in GDP Calculations
December 4, 2023
How does GDP measure changes in inventory levels?
GDP measures changes in inventory levels as part of the calculation for the production approach. When inventory levels rise, it implies unsold goods, potentially signaling decreased future production. Conversely, declining inventories might indicate increased demand, leading to potential production expansions to meet market needs.
Tags : GDP , Inventory Levels , Economic Indicators