If the economy adds to its inventory of goods during 2012:
A) gross investment will exceed net investment by the amount of the inventory increase.
B) this amount should be ignored in calculating 2012's GDP.
C) this amount should be subtracted in calculating 2012's GDP.
D) this amount should be included in calculating 2012's GDP.

Question

Quizplus · Accepted Answer

Inventory investment is a component of gross investment, and therefore should be included in the calculation of GDP. Therefore, if the economy adds to its inventory of goods during 2012, the amount should be included in calculating 2012's GDP.

If the Economy Adds to Its Inventory of Goods During