What is expected to happen to inventory levels when an economy starts to experience slower growth?

Show Answers

Gross Domestic Product risesPrices tend to escalateInventory quantities tend to riseSpending on machinery tends to growUnemployment rates decrease

Explanation

When economic growth slows, businesses often build up their stock levels as sales begin to falter. This results in an increase in inventories while GDP growth, inflation, and investment may not immediately rise.