A movie company makes 500 000 DVDs in the second quarter. It sells 300 000 of them before the end of the second quarter, and holds the others in its warehouse. How is the second quarter GDP affected?
A) The DVDs are included in second-quarter GDP.
B) The DVDs that are not purchased in the second quarter are not counted in the second-quarter GDP.
C) Since all the 500 000 DVDs will eventually be bought by consumers, they are included as consumption in the third quarter.
D) The DVDs will be counted as a change in inventory in the second quarter, and when sold in the third quarter will raise GDP.
Correct Answer:
Verified
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