If business inventories equal $40 billion at the beginning of the year and $55 billion at the end of the year, then, assuming no other changes, GDP must have:
A)decreased by $15 billion.
B)increased by $15 billion.
C)increased by $40 billion.
D)increased by $55 billion.

Question

Quizplus · Accepted Answer

The difference between end-of-year inventories and beginning-year inventories is counted as change in (inventory)investment.

If Business Inventories Equal $40 Billion at the Beginning of the Year