Suppose the total market value of all final goods and services produced in economy X this year is $4 million.Of the $4 million worth of goods and services,$3 million is sold and $1 million is held in inventory.For this year,the GDP for economy X is
A) $4 million.
B) $3 million.
C) $1 million.
D) $7 million.
E) none of the above

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country in a given period. It includes goods and services sold as well as those added to inventories; therefore, the GDP for economy X is $4 million, including both the $3 million sold and the $1 million held in inventory.

Suppose the Total Market Value of All Final Goods and Services