In calculating the GDP, national income accountants:

A.  treat inventory changes as an adjustment to personal consumption expenditures.
B.  ignore inventories because they do not represent final goods.
C.  subtract increases in inventories or add decreases in inventories.
D.  add increases in inventories or subtract decreases in inventories.


Answer: D.  add increases in inventories or subtract decreases in inventories.

Economics

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