Question

Kelly's surf shop orders 5,000 new surf boards at the beginning of the year but only sells 4,500 by the end of the year. how are the 500 unsold surfboards accounted for in gross domestic product?

Answer 1

If these were the given choices:
A) They will be included in the nondurable consumption category of GDP.

B) They will be included in the residential investment category of GDP.

C) They will be included in the government spending category of GDP.

D) They will be included in the inventory investment category of GDP.

E) They will be included in the durable consumption category of GDP.

My answer is: D) They will be included in the inventory investment category of GDP.

GDP stands for Gross Domestic Product. It is the monetary value of all the finished goods and services produced in a given period within a country. These monetary value is equivalent to the current market price of said finished goods and services.