Inventory investment is included as a spending item when computing GDP because

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Inventory investment is included as a spending item when computing GDP because not everything produced in a given time period is sold during that time period. GDP is a measure of the value of all final goods and services produced in an economy within a specific time period, regardless of whether or not they were sold. Therefore, including inventory investment, which represents the value of unsold goods produced during the specified time period, is necessary to avoid underreporting the total output of the economy.

Inventory Investment Is Included as a Spending Item When Computing