When a firm sells a product out of inventory, GDP:
A) increases.
B) decreases.
C) is not changed.
D) increases or decreases, depending on the year the product was produced.

Name: When a firm sells a product out of inventory, GDP: A) increases. B) decreases. C) is not changed. D) increases or decreases, depending on the year the product was produced.
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Question

Quizplus · Accepted Answer

When a firm sells a product out of inventory, GDP is not changed because GDP accounts for goods when they are produced, not when they are sold.

When a Firm Sells a Product Out of Inventory, GDP