Inventories are included in the computation of gross domestic product as part of
A) nonresidential fixed investment.
B) residential fixed investment.
C) depreciation allowances.
D) the total capital stock.
E) none of the above.

Question

Quizplus · Accepted Answer

Inventories are actually considered a part of investment in the GDP calculation, specifically under the category of changes in business inventories, which does not fall under any of the options provided (nonresidential fixed investment, residential fixed investment, depreciation allowances, or the total capital stock).

Inventories Are Included in the Computation of Gross Domestic Product