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This Year a Firm Produces $100 Million Worth of Cars

Question 186

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This year a firm produces $100 million worth of cars this year and sells $102 million worth of cars.Which of the following is true?


A) GDP for this year will increase by $100 million.
B) GDP for this year will increase by $102 million.
C) Inventory investment will increase by $2 million.
D) GDP for this year will increase by $202 million.
E) The premise of the question is wrong because it is impossible for a firm to sell more than it produces in a given time period.

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