Question : Change in stock is zero when
Option 1: Private final consumption expenditure = Government final consumption expenditure.
Option 2: Gross domestic capital formation = Gross domestic fixed capital formation.
Option 3: Government final consumption expenditure = Gross domestic fixed capital formation.
Option 4: Net exports= Exports-Imports
Answer (1)
15th Jan, 2024
Correct Answer:
Gross domestic capital formation = Gross domestic fixed capital formation.
Solution : Change in stock is a component of gross domestic capital formation. Change in stock is zero when gross domestic capital formation is equals to gross domestic fixed capital formation. Hence option B is correct.
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