Inventories are part of an investment and therefore included in GDP because
A. inventories represent the amount of factors of production firms have used to produce goods.
B. the sale of shares of stock are not included in any other​ component, inventories allow GDP to capture this spending.
C. the value added by production goes into goods but not production and since goods start in​ inventory, that component needs to be computed.
D. firms produce​ goods, however, sometimes the goods may be unsold at the time GDP is computed.

For unlimited access to Homework Help, a Homework+ subscription is required.

Irving Heathcote
Irving HeathcoteLv2
24 Mar 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related textbook solutions

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in