what is inventory investment
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ɪɴᴠᴇɴᴛᴏʀʏ ɪɴᴠᴇsᴛᴍᴇɴᴛ , ᴀʟsᴏ ʀᴇғᴇʀʀᴇᴅ ᴛᴏ ᴀs ᴄʜᴀɴɢᴇ ɪɴ ᴘʀɪᴠᴀᴛᴇ ɪɴᴠᴇɴᴛᴏʀɪᴇs (ᴄɪᴘɪ) ʙʏ ᴛʜᴇ ʙᴇᴀ, ɪs ᴀ ᴄᴏᴍᴘᴏɴᴇɴᴛ ᴏғ ɢʀᴏss ᴘʀɪᴠᴀᴛᴇ ɪɴᴠᴇsᴛᴍᴇɴᴛ ᴏғ ɢᴅᴘ ᴛʜᴀᴛ ʀᴇᴘʀᴇsᴇɴᴛs ᴛʜᴇ ᴅɪғғᴇʀᴇɴᴄᴇ ʙᴇᴛᴡᴇᴇɴ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ᴀɴᴅ sᴀʟᴇs ᴅᴜʀɪɴɢ ᴛʜᴇ ᴘᴇʀɪᴏᴅ. ɢʀᴏss ᴅᴏᴍᴇsᴛɪᴄ ᴘʀᴏᴅᴜᴄᴛ (ɢᴅᴘ) ᴛᴇʟʟs ᴜs ᴀʙᴏᴜᴛ ᴛʜᴇ ʟᴇᴠᴇʟ ᴏғ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ɪɴ ᴀɴ ᴇᴄᴏɴᴏᴍʏ.
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Inventory investment is a component of gross domestic product (GDP). What is produced in a certain country is naturally also sold eventually, but some of the goods produced in a given year may be sold in a later year rather than in the year they were produced.
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