Suppose that in 2012, Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth. Is the remaining $4 million increase in inventories part of GDP for 2012?

1. Yes, since changes in inventories are part of consumption expenditures.

2. Yes, since they are part of the economy's output in 2012.

3. Yes, since changes in inventories are part of actual investment.

Select one:

a. 1 only

b. 2 only

c. 3 only

d. both 1 and 2

e. both 2 and 3