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The Local Subaru Dealership Has an Increase in Inventory of 17

Question 19

Multiple Choice

The local Subaru dealership has an increase in inventory of 17 cars in 2012. In 2013 it sells all 17 cars.


A) The value of the increased inventory will be counted as part of the investment component of GDP in 2012, and the value of the 17 cars sold in 2013 will reduce the investment component in 2013 GDP.
B) The value of the 17 unsold cars will be deducted from the investment component of GDP in 2012, and the value of the 17 cars sold in 2013 will increase the consumption component in 2013 GDP.
C) The value of the increased inventory will be counted as part of GDP in 2012 and the value of the 17 cars sold in 2013 will cause 2012 GDP to increase.
D) The value of the increased inventory will not affect 2012 GDP, but the sale of the cars in 2013 will cause 2013 GDP to increase.

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