Sophia Just Bought Shares of Stock in IBM for $20,000

question 52

Multiple Choice

Sophia just bought shares of stock in IBM for $20,000 and paid a $300 commission to her broker.How did this impact GDP?

• A) It had no impact on GDP.
• B) GDP increased by $300.
• C) GDP increased by $20,000.
• D) GDP increased by $19,700.
• E) GDP increased by $20,300.

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Definitions:

Merchandise

Goods that are bought and sold in business transactions, often referred to in the context of retail or wholesale trading.

Merchandise Inventory

The total value of a company's products that are currently unsold, crucial for retail and wholesale businesses.

Operating Cycle

The average period of time required for a business to convert its investments in inventory back into cash through the sale of goods or services.

Merchandise

Products or goods that are bought, sold, or traded within a retail environment.