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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? The unsold
The state government works with local employers to develop training programs to ensure students skills will better match the
In the banking system, the required reserve ratio measures the amount by which the money supply will change if bank reserves
The main reason people hold money (in terms of what counts in M1) is to O buy goods and services. O all of these are correct.
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Answer #1

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Answer: The unsold cars are considered inventory and their value will increase investment spending in 2019.


Explanation:
GDP is the value of all finished goods and services produced within a country within a specific time period. Even though the cars went unsold, still they are finished goods so they will be considered as a part of GDP. It adds as an increase in inventory. Increases in business inventories are counted in the calculation of GDP so that new goods that are produced but go unsold are still counted in the year in which they are produced.


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