At the End of the Year, 2,500 Ford Explorers Are

question 89

Multiple Choice

At the end of the year, 2,500 Ford Explorers are waiting to be delivered to dealerships. How is this overproduction accounted for in this year's GDP?

• A) The cars are inventory, and their value will increase investment.
• B) The cars are durable goods, and their value will increase consumption.
• C) The cars are not counted toward this year's GDP; they will count toward next year's GDP when they are sold.
• D) The cars are unsold inventory and they reduce the value of investment.

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