Ask Question
16 February, 05:48

Which of the following is included in the investment component of GDP?

a. Construction of a new commercial warehouse

b. Purchases of initial inventory to stock the shelves of a newly opened bookstore

c. Construction of a private residence

d. All of the above

+5
Answers (1)
  1. 16 February, 08:59
    0
    The correct answer is letter "D": All of the above.

    Explanation:

    The Gross Domestic Product (GDP) represents the overall market value of all the goods and services a country produces and measures the size of the economy over a certain period. The GDP takes into account government spending, private investments, consumption, and net export (exports minus imports).

    Private investment could be non-residential - tools, machinery, and factories - and residential - physical structures and equipment. Thus:

    A) Construction of a new commercial warehouse (Residential Investment).

    B) Purchases of initial inventory to stock the shelves of a newly opened bookstore (Non-residential investment).

    C) Construction of a private residence (Residential Investment).
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following is included in the investment component of GDP? a. Construction of a new commercial warehouse b. Purchases of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers