Question

Goods that are produced but not sold during a given time period _______.

1) increase business inventories but leave GDP unchanged.
2) are counted as business inventories, a part of the GDP calculations.
3) are not counted in GDP for the period.
4) are included in the following year's GDP when the goods are sold.
5) increase government inventories but leave GDP unchanged.

Answer 1

are counted as business inventories, a part of the GDP calculations.

Step-by-step explanation:

GDP is the total dollar value of all goods produced in a nation, not all goods sold.

Answer 2

Answer is option 2, i.e. are counted as business inventories, a part of the GDP calculations.

Step-by-step explanation:

GDP i.e. Gross Domestic Product is the monetary value of finished products or goods that are produced within a country in a given time period. Even if the produced goods are not sold, they are taken into consideration while calculating the GDP of the country. This is because of the cost and resources that are used for the production of these goods. Therefore, these unsold but finished goods are counted as business inventories as a part of the GDP calculations.