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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 2006 and 2007?

Answer :

The required, if the automobile was unsold in 2006 and carried over to 2007, it would still be counted as inventory in 2006 and would contribute to the GDP for that year.

What is gross domestic product?

Gross domestic product (GDP) is a measure of the total value of goods and services produced within a country during a specific period, usually a year.

Here,
The effect on gross domestic product (GDP) in 2006 and 2007 from the sale of an automobile manufactured in 2006 and sold to a consumer in 2007 would be different.

In 2006, the automobile's production would have contributed to the GDP as a part of the country's gross domestic product, as it is considered an investment in the economy's productive capacity. The sale of the automobile in 2007 would not contribute to the GDP because it is a transfer of ownership of a previously produced good.

However, if the automobile was unsold in 2006 and carried over to 2007, it would still be counted as inventory in 2006 and would contribute to the GDP for that year. When it is sold in 2007, it would be counted as a final sale and would contribute to the GDP of that year.

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Answer:

it would increase in 2006 but would have "no change" in 2007

Explanation: