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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Definitions:

Medulla

The innermost part of an organ or structure, such as the medulla oblongata of the brain that controls autonomic functions, or the inner region of an adrenal gland.

Hypothalamus

A region of the brain that coordinates many bodily functions, including hunger, thirst, temperature regulation, and the release of hormones.

Cerebellum

A part of the brain located at the back of the skull, beneath the cerebrum, responsible for coordinating voluntary movements, balance, and posture.

Muscular Activity

Muscular activity refers to the movement or action generated by the contraction of muscles, which can range from voluntary movements to involuntary processes.