During the current quarter,a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.The value of the goods added to inventory is

Question

Quizplus · Accepted Answer

The goods added to inventory are considered as investment (change in inventories) and are included in the GDP calculation for the current quarter. This is because inventory added is a part of the firm's investment in goods that can be sold later. Therefore, choice B is the correct answer.

During the Current Quarter,a Firm Produces Consumer Goods and Adds