The Local Chevrolet Dealership Has an Increase in Inventory of 25

question 156

Multiple Choice

The local Chevrolet dealership has an increase in inventory of 25 cars in 2012.How will the sale of all 25 cars in 2013 affect the GDP?

• A)The value of the cars will be counted as part of GDP in 2012, but not in 2013.
• B)The value of the cars will not affect the 2012 GDP, but will be included in 2013 GDP.
• C)The value of the cars will be included in both 2012 and 2013 GDP.
• D)The value of the cars will not be included in GDP in 2012 or 2013.

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Definitions:

Short-swing Profits

Profits earned by corporate insiders from buying and selling their company's stock within a short period, regulated by securities laws.

Statutory Insider

A person within a corporation, such as directors or executives, who possesses key information, making them subject to insider trading regulations.

Company Stock

Equity shares issued by a corporation representing ownership in the company.

Tippee

An individual who receives confidential information from an insider.