Question

Sharp Edge makes pencils. At the end of 2014 it had $2 million worth of pencils in inventory. During 2015 it sold $10 million worth of pencils to consumers and had $1 million worth of pencils in inventory at the end of 2015. How much did Sharp Edge add to GDP in 2015?

Answer 1

Answer:

$9 million

Explanation:

The gross domestic product includes all the final goods and services produced within a certain period.

Since Sharp Edge's beginning inventory was $2 million, and it sold $10 million, plus its ending inventory was $1 million, their total production for year 2015 = total sales + ending inventory - beginning inventory = $10 million + $1 million- $2 million = $9 million