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30-01-2020
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A manufacturer produces 1 million televisions in the first quarter of the year. It sells 900,000 of them before the end of the first quarter, and holds the others in its warehouse. How will the 100,000 unsold televisions be treated in the GDP statistics?

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vargasjerry vargasjerry

31-01-2020

ANSWER:

The televisions will be counted as a change in inventory in the first quarter and so will be included in first-quarter GDP .

STEP-BY-STEP EXPLANATION:

For question The televisions will be counted as a change in inventory in the first quarter and so will be included in first-quarter GDP is

The televisions will be counted as a change in inventory in the first quarter and so will be included in first-quarter GDP .

If an economy's GDP rises, then it must be the case that the economy's income and expenditure both rise.

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