Apple has been producing the new iPhone throughout 2013, but doesn't plan to sell it until March 2014. How are these iPhones, which are sitting in a warehouse somewhere in the U.S., affecting GDP?
A) They are inventory and will decrease investment in 2013.
B) They will increase GDP only in the year they are produced, 2013.
C) They are considered inventory until they sell, so investment will increase when they are sold in 2014.
D) They are not counted in GDP at all since they were not sold.

Question

Quizplus · Accepted Answer

The iPhones are counted as inventory investment in 2013, thus increasing GDP in the year they are produced.

Apple Has Been Producing the New IPhone Throughout 2013, but Doesn't