Question 1
A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as
◦ part of gross private domestic investment.
◦ a durable consumption good.
◦ a service.
◦ a nondurable consumption good.
Question 2
The change in business inventories is measured as
◦ final sales minus GDP.
◦ final sales plus GDP.
◦ GDP minus final sales.
◦ the ratio of final sales to GDP.