Additions to inventory is
A) not counted as an expenditure in GDP accounting.
B) counted as an intermediate input.
C) counted as a component of investment spending.
D) subtracted from sales revenue in calculating profit income.
E) considered national savings.

Question

Quizplus · Accepted Answer

Additions to inventory are counted as a component of investment spending in GDP accounting because they represent an investment in producing goods for future sales.

Additions to Inventory Is