Multiple Choice
A movie company makes 500,000 DVDs of one of its latest releases. It sells 300,000 of them before the end of the second quarter, and holds the others in its warehouse. How will the 200,000 unsold DVDs be treated in the GDP statistics?
A) Since the DVDs eventually will be bought by consumers, they will be included as consumption in the second quarter.
B) Since the DVDs were not purchased in the second quarter, they will be counted as an increase in third-quarter GDP.
C) The DVDs will be counted as a change in inventory in the second quarter and so will be included in second-quarter GDP.
D) The DVDs will be counted as a change in inventory in the second quarter, and when sold in the third quarter will raise third-quarter GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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