How are inventories included in the calculation of the expenditure measure of GDP?
A) They are not included until they are purchased by a consumer.
B) They are counted as soon as they are produced.
C) They are counted as being purchased and owned by the firm if they are not sold to a consumer.
D) The value of the inputs to create the inventory is used until the inventories are purchased.

Question

Quizplus · Accepted Answer

Inventories are counted as part of GDP when they are produced, even if they are not sold, as they are considered as being purchased and owned by the firm.

How Are Inventories Included in the Calculation of the Expenditure