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What Is the Result If the Inventory of Goods Grows

Question 42

Multiple Choice

What is the result if the inventory of goods grows from one year to the next?


A) Gross investment will exceed net investment by the amount of the inventory increase.
B) The value of the inventory at the end of the current year should be part of the year's GDP.
C) Inventories are not included in GDP since GDP measures only the value of goods and services actually sold in a year.
D) It will be necessary to add the additional inventory to aggregate expenditures to obtain this year's GDP.
E) It will be necessary to subtract the additional inventory to aggregate expenditures to obtain this year's GDP.

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