Apple has started producing the newest iPhone, but doesn't plan to sell the phones it makes this year until the official product launch next year. How will these iPhones affect this year's GDP?
A) They are inventory and will decrease GDP
B) They will increase GDP
C) GDP will increase next year, when the phones are sold
D) GDP will increase by less than the full cost of the phone due to depreciation

Question

Quizplus · Accepted Answer

Producing goods adds to the GDP in the year the goods are produced, not when they are sold. Thus, the production of iPhones will increase this year's GDP as it reflects the economic activity of manufacturing those goods.

Apple Has Started Producing the Newest IPhone, but Doesn't Plan