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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 2008.In 2009 it sells all 17 cars.

A) The value of the increased inventory will be counted as part of the investment component of GDP in 2008, and the value of the 17 cars sold in 2009 will reduce the investment component in 2009 GDP.
B) The value of the 17 unsold cars will be deducted from the investment component of GDP in 2008, and the value of the 17 cars sold in 2009 will increase the consumption component in 2009 GDP.
C) The value of the increased inventory will be counted as part of GDP in 2008 and the value of the 17 cars sold in 2009 will cause 2008 GDP to increase.
D) The value of the increased inventory will not affect 2008 GDP, but the sale of the cars in 2009 will cause 2009 GDP to increase.

Correct Answer: