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  3. Study Set
    Principles of Economics Study Set 12
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    Exam 18: Measuring the Production, Income, and Spending of Nations
  5. Question
    Inventory Investment Is Included as a Spending Item When Computing
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Inventory Investment Is Included as a Spending Item When Computing

Question 3

Question 3

Multiple Choice

Inventory investment is included as a spending item when computing GDP because


A) GDP is meant to be a measure of total sales.
B) of a historical accident.
C) it is the same as plant and equipment investment.
D) not everything produced in a given time period is sold during that time period.
E) there would otherwise be double counting.

Correct Answer:

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