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When a Firm Produces Consumer Goods and Adds Some to Inventory

Question 1

Multiple Choice

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


A) It is not counted in the current quarter GDP.
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.

Correct Answer:

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