Question

Which expression defines Change in Inventories?

Options

• \[\mathrm{Gross\ Value\ Added}-\mathrm{Depreciation}\]

• \[\mathrm{Previous\ year's\ stock}-\mathrm{Current\ year's\ stock}\]

• \[\mathrm{Current\ year's\ stock}-\mathrm{Previous\ year's\ stock}\]

• \[\mathrm{Value\ of\ output}+\mathrm{Intermediate\ inputs}\]

Answer 1

Change in Inventories is current year's stock minus previous year's stock. The sign of this difference determines accumulation or decumulation.