if-a-company-increases-its-inventory-by-50-million-during-the-year-how-does-this

Question

If a company increases its inventory by $50 million during the year, how does this affect GDP?

Accepted Answer

It increases GDP because the production of goods is counted.

Answer

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

Answer

It decreases GDP because inventory is considered a financial investment.

Answer

It decreases GDP because unsold goods are not counted.

If a company increases its inventory by \$50 million during the year, how does this affect GDP?