GDP is different from final sales since

A. measurements of GDP and final sales are subject to statistical errors.

B. final sales measures only what the consumers buy, but GDP is the sum total of consumption, investment, government purchases and net exports.

C. final sales measures only domestic sales, but GDP considers exports as well.

D. final sales ignores changes in inventory, which are included in GDP calculation.

Question

Social Studies

Misael Glover

23 February, 21:16

GDP is different from final sales since

A. measurements of GDP and final sales are subject to statistical errors.

B. final sales measures only what the consumers buy, but GDP is the sum total of consumption, investment, government purchases and net exports.

C. final sales measures only domestic sales, but GDP considers exports as well.

D. final sales ignores changes in inventory, which are included in GDP calculation.

+4

Answers (1)

Know the Answer?

Jamir Mcgee · Answer 1

D. final sales ignores changes in inventory, which are included in GDP calculation.

Explanation:

Final sales is GDP minus net exports and inventory investment. It measures demand for goods and services from US households, businesses and government, regardless of whether those goods and services are imported or domestically produced.