What Is the Result If the Inventory of Goods Grows

question 42

Multiple Choice

What is the result if the inventory of goods grows from one year to the next?

• A)Gross investment will exceed net investment by the amount of the inventory increase.
• B)The value of the inventory at the end of the current year should be part of the year's GDP.
• C)Inventories are not included in GDP since GDP measures only the value of goods and services actually sold in a year.
• D)It will be necessary to add the additional inventory to aggregate expenditures to obtain this year's GDP.
• E)It will be necessary to subtract the additional inventory to aggregate expenditures to obtain this year's GDP.

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