Goods that are produced in a particular period but not sold in the current period:
A) are included in consumption estimates.
B) are called inventories and are included in gross private investment.
C) are excluded from the current year's GDP and included in GDP in the year they are sold.
D) are classified as intermediate goods.

Question

Quizplus · Accepted Answer

Goods that are produced in a particular period but not sold in the current period are called inventories and are included in gross private investment. They are not included in the current year's GDP as they are not considered as final goods or services purchased by the end user. Instead, they are considered as investment in production for the future. They are included in GDP only in the year they are sold, as part of the value of the final goods or services produced.

Goods That Are Produced in a Particular Period but Not