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Business, 02.07.2019 21:10 carryislarrywithdair

Amanufacturer produces 500,000 mp3 players in the first quarter of the year. it sells 400,000 of them and adds 100,000 of them to inventory. all the players added to inventory are purchased by consumers in the second quarter. how are the 100,000 that go into inventory counted in gdp? the mp3 players will be counted as a change in inventory in the first quarter, and when sold in the second quarter will raise gdp by the value of the mp3 players. since the mp3 players were purchased by consumers in the second quarter, they will be counted as an increase in second- quarter gdp. since the mp3 players eventually will be bought by consumers, they will be included as consumption in the first quarter. the mp3 players will be counted as a change in inventory in the first quarter, and so will be included in first quarter gdp as part of investment.

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Amanufacturer produces 500,000 mp3 players in the first quarter of the year. it sells 400,000 of the...
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