How Does GDP Account for Something That Was Produced for Sale

question 138

Multiple Choice

How does GDP account for something that was produced for sale in one year and sold in the next year?

• A)It is counted in the first year and anything that happens latter does not count.
• B)It is counted in the second year.
• C)It is counted as an addition to inventory (which is in business investment)in the year it. was produced and the markup is counted in the year in which it is sold.
• D)It is counted twice.

---

Definitions:

Multiply

The mathematical operation of increasing one number by the value of another, a basic arithmetic function symbolized by the symbol “x” or “*”.

Smaller

Lesser in size, amount, or degree compared to another reference point or object.

Nearest Tenth

A mathematical term describing the rounding of numbers to the first decimal place.

Larger

Comparatively greater in size, quantity, or extent.