Which of the Following About Inventory Changes and GDP Is

question 61

Multiple Choice

Which of the following about inventory changes and GDP is true?

• A) Inventory investment adds to GDP because it represents goods produced during the current period.
• B) Inventory investment is subtracted from GDP because the goods were not sold during the period.
• C) Inventory investment does not affect GDP because the goods were not sold during the period.
• D) Inventory investment does not affect GDP because it does not represent goods produced during the period.

---

Definitions:

Adverse Publicity

Negative media coverage or public attention that can potentially harm an organization's reputation or financial standing.

Advocacy

The act of publicly supporting or recommending a particular cause or policy.

Lorillard Tobacco Co.

An American tobacco company known historically for producing cigarettes and other tobacco products.