If Business Inventories Equal $20 Billion at the Beginning of the Year

question 176

Multiple Choice

If business inventories equal $20 billion at the beginning of the year but equal $30 billion at the end of the year,then GDP has

• A) decreased by $10 billion.
• B) increased by $10 billion.
• C) increased by $20 billion.
• D) increased by $30 billion.
• E) not changed.

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Definitions:

Intragroup Sale

Transactions involving the sale of goods or services between subsidiaries within the same parent company, often scrutinized for transfer pricing and tax implications.

Intragroup Transfer

Transactions between companies that are part of the same corporate group, such as the sale of goods or services, transfer of assets, or sharing of resources.

Inventories

Quantifiable goods or materials held by a company for the purpose of sale in the ordinary course of business, production, or use in creating goods and services.

Depreciable Asset

An asset that decreases in value over time due to use, wear and tear, or obsolescence and can be written off against income.