Additions to inventory are
A) not counted as an expenditure in GDP accounting.
B) counted as an intermediate input.
C) counted as a component of investment spending.
D) subtracted from sales revenue in calculating profit income.

Question

Quizplus · Accepted Answer

Additions to inventory are considered a component of investment spending in GDP accounting since they represent an increase in the stock of physical goods that can be used in the production of future output.

Additions to Inventory Are