Multiple Choice
At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year's GDP? The cars are:
A) considered inventory and their value will increase investment.
B) considered durable goods, and their value will increase consumption.
C) not counted until they are sold in next year's GDP.
D) considered a bad thing and reduce the value of investment.
Correct Answer:

Verified
Correct Answer:
Verified
Q23: Calculating the value of an economy is
Q24: We can measure total production by:<br>A) adding
Q25: A GDP deflator of 112 means:<br>A) the
Q26: The four components that make up GDP
Q27: Suppose you are given the following annual
Q29: An example of something that might be
Q30: Inrecent years in China, the fraction of
Q31: If we add up all the money
Q32: If the Real GDP increases from one
Q33: The income approach to calculating GDP:<br>A) is