If a car is produced in Detroit in 2013 but not sold until 2014, it should be included in _____ GDP, and its value should be counted in _____.
A) 2013's; inventory changes
B) 2013's; durable goods
C) 2014's; durable goods
D) 2014's; personal consumption expenditures

Question

Quizplus · Accepted Answer

The car was produced in 2013, so it should be included in 2013's GDP. However, since it was not sold until 2014, the value of the car should be counted in inventory changes, which is a component of GDP.

If a Car Is Produced in Detroit in 2013 but Not