if-a-company-decreases-its-inventory-by-30-million-during-the-year-what-is-the-i

Question

If a company decreases its inventory by $30 million during the year, what is the impact on GDP?

Accepted Answer

It decreases GDP because the production of goods is not counted.

Answer

It increases GDP because unsold goods are counted.

Answer

It increases GDP because inventory is considered a financial investment.

Answer

It has no effect on GDP because inventory changes are not included.

If a company decreases its inventory by \$30 million during the year, what is the impact on GDP?