If the economy adds to its inventory of goods during some year,

Question

Quizplus · Accepted Answer

The amount the economy adds to its inventory of goods during a year should be included in calculating that year's GDP. This is because the value of inventory is considered as a final good that is produced in the current period and included in the GDP. However, it is important to note that only the value of the final goods in the inventory should be included in the GDP and not the value of intermediate goods.

If the Economy Adds to Its Inventory of Goods During