In 2016 final sales equal $350 billion and the change in business inventories is -$60 billion. GDP in 2016
A) is $290 billion.
B) is $295 billion.
C) is $410 billion.
D) cannot be determined from this information.

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of final sales and the change in inventories. Therefore, GDP = $350 billion + (-$60 billion) = $290 billion.

In 2016 Final Sales Equal $350 Billion and the Change