(Solved): Suppose new data on GDP is released. It tells us that GDP grew quickly, and the increase was driven ...

Suppose new data on GDP is released. It tells us that GDP grew quickly, and the increase was driven by a large increase in inventory. What does this tell us about the future? GDP is likely to rise because companies will increase production GDP is likely to fall because companies will reduce production The answer is not clear - high inventories could cause GDP to rise or fall