Answer to Question #60740 in Macroeconomics for Mac

Question

A government report traces the economy's stagnation in the last 15 months to massive decline in spending on commercial construction, while residential construction grew at only half pace. of recent note, however is a fall in inventories. IN which category or categories of the national expenditures accounts, C, I, G, or X would these spending be recorded?

Answer 1

If a government report traces the economy's stagnation in the last 15 months to massive decline in spending on commercial construction, while residential construction grew at only half pace and there is a fall in inventories, then this spending will be recorded in the categories C (consumption) and I (investment) of the national expenditures accounts.