Which of the following observations concerning GDP calculations is t?
A) Goods and services produced by governments are valued at market price.
B) Inventories are treated as if they are yet to be sold.
C) Goods produced but not sold during the year are counted in that year's GDP.
D) Goods that firms add to their inventories do not count in the GDP.

Question

Quizplus · Accepted Answer

Goods produced but not sold during the year are counted in that year's GDP as they are considered part of the inventory investment, which is a component of GDP.

Which of the Following Observations Concerning GDP Calculations Is T