Can Dramatic Increase In Inventory Signal End Of Recession

Question

Why did some countries fare better in the recent financial crisis? Can early warning indicators help predict which countries will be most vulnerable in an economic crisis such as the one that occurred in 2008-09?

From the data found in the Excel sheet attached, we want to focus on the following five countries:
·    Australia
·    China
·    Iceland
·    Japan
·    United States

Question:

Suppose that business inventories increased dramatically last month. What does this tell you about the state of the economy? Would your answer be affected by whether the increase in inventories was taking place at the end of a recession or the end of an expansion? Explain.

Summary

The question belongs to Economics and it discusses about a scenario where business inventories have increased dramatically in the last month and its effect on the economy. The increase in inventory being an indicator of end of recession has been discussed.

Total Word Count 190