QUESTION 54 and changes in private inventories, is an important determinant of Gross private domestic investment,...

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Answer #1

54. Option B.

Gross private domestic investment, which consists of fixed investments and changes in private investments, is an important determinant of Swings in the business cycle.
It is the investment, that is made on the domestic products of a nation and contributes to Overall productivity of a nation.
It shows how the business cycle undergoes changes with the changes in the economic activity due to increased investments.

55. Option A.

The value of investments in the stock and bond's market is not a concern regarding GDP as a measure of economic activity.
Investments in stocks and bonds, increase the economic activity of a nation, but they are not related to the GDP which also measures the changes in economic activity.

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