In 2016 the change in business inventories is -$30 billion and GDP is $160 billion. Final sales in 2016 are
A) $100 billion.
B) $130 billion.
C) $160 billion.
D) $190 billion.

Question

Quizplus · Accepted Answer

Final sales are calculated as GDP minus the change in business inventories. If the change in business inventories is -$30 billion and GDP is $160 billion, then final sales = $160 billion - (-$30 billion) = $160 billion + $30 billion = $190 billion.

In 2016 the Change in Business Inventories Is -$30 Billion