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Suppose That in 2015,Canada Cars Corporation Produced $20 Million Worth

Question 42

Multiple Choice

Suppose that in 2015,Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth.Is the remaining $4 million increase in inventories part of GDP for 2015? 1.Yes,since changes in inventories are part of consumption expenditures.
2.Yes,since they are part of the economy's output in 2015.
3.Yes,since changes in inventories are part of actual investment.


A) 1 only
B) 2 only
C) 3 only
D) both 1 and 2
E) both 2 and 3

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