How Are Inventories Included in the Calculation of the Expenditure

question 107

Multiple Choice

How are inventories included in the calculation of the expenditure measure of GDP?

• A) They are not included until they are purchased by a consumer.
• B) They are counted as soon as they are produced.
• C) They are counted as being purchased and owned by the firm if they are not sold to a consumer.
• D) The value of the inputs to create the inventory is used until the inventories are purchased.

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Definitions:

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