In 2012,GDP was exactly equal to final sales.This implies that
A)there was accumulation of inventories that year.
B)there was a decline in inventories that year.
C)there was no change in inventories that year.
D)GDP did not grow that year compared to the year before.

Question

Quizplus · Accepted Answer

Final sales represent the value of goods and services purchased by end-users, while GDP includes the total value of final sales and changes in inventories. When GDP is equal to final sales, it means that there was no change in inventories during that year. Therefore, the correct answer is C.

In 2012,GDP Was Exactly Equal to Final Sales