Question

In \[\mathrm{GVA}_{i}\equiv V_{i}+A_{i}-Z_{i}\], what does \[A_i\] represent?

Options

• Depreciation

• Addition to inventories

• Value of final goods sold

• Value of intermediate goods used

Answer 1

\[A_i\] represents addition to inventories. It captures output produced but not yet sold as final goods.