Consumer goods that are produced,go into inventory,and are not sold during the current period are

Question

Quizplus · Accepted Answer

Consumer goods that are produced, go into inventory, and are not sold during the current period are included in current period GDP as inventory investment. This is because inventory investment is a component of GDP that measures the change in the stock of unsold goods held by firms. These goods are treated as an investment because they represent a commitment of resources by the firm to produce and store goods that are expected to be sold in the future.

Consumer Goods That Are Produced,go into Inventory,and Are Not Sold