During 2006 a leading auto manufacturer produced $18 million worth of SUVs. Howe

Question

During 2006 a leading auto manufacturer produced $18 million worth of SUVs. However, due to soaring gas prices, the sale of SUVs became sluggish and by the end of 2006 only $16 million worth of SUVs were sold. As for the contribution of the SUVs to GDP 0 A. $18 million are added to 2006's GDP, all as consumption. OB. $18 million are added to 2006's GDP with $16 million as consumption and $2 million as private investment. C. $16 million are added to 2006's GDP all as private investment. D. $16 million are added to 2006's GDP, all as consumption

Explanation / Answer

Solution: $18 million are added to? 2006's GDP with ?$16 million as consumption and ?$2 million as private investment.

Explanation: The total production will be added in GDP where in the sold will be categorised in consumption and remaining as private investment.

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