How Are Goods That Go into Inventory and Are Not

question 23

Multiple Choice

How are goods that go into inventory and are not sold during the current period treated in GDP terms?

• A) They are counted as intermediate goods and so are not included in current-period GDP.
• B) They are counted in current GDP only if the firm that produced them sells them to another firm.
• C) They are included in current-period GDP as inventory investment.
• D) They are included in current-period GDP as consumption.

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