In 2012 final sales equal $200 billion,and the change in business inventories is $50 billion.GDP in 2012
A)is $250 billion.
B)is $200 billion.
C)is $150 billion.
D)is $40 billion.

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of final sales (i.e. sales of goods and services to households, businesses, and governments) and the change in business inventories. Therefore, GDP in 2012 would be:

GDP = Final sales + Change in business inventories
GDP = $200 billion + $50 billion
GDP = $250 billion

In 2012 Final Sales Equal $200 Billion,and the Change in Business