If toy stores overestimate the demand for a toy in 2004 and,as a result,have an unexpectedly large number of them on hand at the end of the year,the value of the increased inventory of those toys will be counted as
A)investment in 2004
B)investment in 2005
C)consumption in 2004
D)consumption in 2005
E)part of GDP only when the toys are sold

Question

Quizplus · Accepted Answer

The increased inventory is considered an investment in 2004 because it represents goods produced but not sold within that year.

If Toy Stores Overestimate the Demand for a Toy in 2004