The value of final sales tends to be less volatile than GDP because
A) it excludes residential investment.
B) it excludes inventory investment.
C) it excludes nonresidential investment.
D) it includes allowances for credit purchases of large consumer durables.
E) all of the above.

Question

Quizplus · Accepted Answer

Final sales exclude inventory investment, which can fluctuate significantly from quarter to quarter, making GDP more volatile. The other options are not typically excluded from final sales calculations.

The Value of Final Sales Tends to Be Less Volatile