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When a Firm Produces Consumer Goods and Adds Some to Inventory

Question 25

Multiple Choice

When a firm produces consumer goods and adds some to inventory rather than selling them, how is the increase in inventory counted in GDP?


A) It is counted in the current quarter GDP as capital consumption allowance.
B) It is counted in the current quarter GDP as investment.
C) It is counted in the current quarter GDP as consumption.
D) It is counted in the current quarter GDP as a statistical discrepancy.

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