In 2016, there was no change in inventories, which implies that GDP was ________ in 2016.
A) exactly equal to final sales
B) greater than final sales
C) less than final sales
D) zero

Question

Quizplus · Accepted Answer

If there is no change in inventories, it means that all production was sold and there was no unsold inventory left at the end of the year. Therefore, GDP would be equal to final sales, which represents the total value of goods and services produced and sold during the year.

In 2016, There Was No Change in Inventories, Which Implies