In 2019, Ford Motors produced 40,000 cars and they sold 39,800 of them. How do the...

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In 2019, Ford Motors produced 40,000 cars and they sold 39,800 of them. How do the unsold cars impact GDP in 2019? None of th

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Answer 1

Answer #1

Option B.

Any unsold newly produced goods are also included in the GDP of that year.
That is if in 2019, Ford motors could sell only 39,800 cars, then the remaining unsold cars will still be included in the GDP for that year.
This is because, the firm makes higher investments in the production of those cars and hence they are included in the investment part of the GDP even though they are unsold.

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Answer 2

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