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If an automobile was manufactured in 2006 and sold to a consumer in 2007, what was the effect on gross domestic product in 20
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Answer #1

Ans: C.

Explanation:

Since it was produced in 2006, it will be counted in 2006's GDP. Since it is unsold in 2006, it will come under inventory investment in 2006 GDP.

No impact on 2007's GDP as same will be shifted from 'inventory investment' to 'private final consumption expenditure' tag.

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