In the components of Gross Domestic Product from the expenditure side, 'Change in Stocks' is shown as a part of:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Investment
In the table of GDP components, Investment is the sum of Gross Fixed Capital Formation, Change in Stocks and Valuables. A change in stocks (inventories) is treated as investment.
NCERT (2026-27): “3. Gross Fixed Capital Formation (GFCF) 6333084 “2.2.1 The Product or Value Added Method … Inventories are treated as capital. Addition to the stock of capital of a firm is known as investment. Therefore, change in the inventory of a firm is treated as investment. …” |