Question

Meaning of inventory and non inventory accumulation

Answer 1

Answer:

Inventory and Non inventory accumulation.

Explanation:

This types of inventories are defined as follows.

•Inventory accumulation

It is an excess of inventory that a firm owner has difficulty moving after an unplanned event largely affects sales.

•Non inventory accumulation

Planned investment does not include unintended inventory accumulation

If firms produce goods but can't sell them, those goods are counted in GDP, as non inventory accumulation, but they are not part of aggregate demand, because, plainly, nobody was demanding the goods.