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A Company Makes 4,000 Solar Panels in the Second Quarter

Question 42

Multiple Choice

A company makes 4,000 solar panels in the second quarter. It sells 3,000 of them before the end of the second quarter, and holds the others in its warehouse. How is the second quarter GDP affected?


A) The solar panels are included in second-quarter GDP.
B) The solar panels that are not purchased in the second quarter are not counted in the second-quarter GDP.
C) Since all the 4,000 solar panels will eventually be bought by consumers, they are included as consumption in the third quarter.
D) The solar panels will be counted as a change in inventory in the second quarter, and when sold in the third quarter will raise GDP.

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