For computing GDP, the official measure of the value of all goods produced during a period for use in the production of other goods is called:
A) personal investment expenditure.
B) a capital consumption allowance.
C) a transfer payment.
D) gross private domestic investment.

Question

Quizplus · Accepted Answer

The official measure of the value of all goods produced during a period for use in the production of other goods is called gross private domestic investment, which includes expenditures on machinery, equipment, and construction of buildings that are used in the production of goods and services. Personal investment expenditure refers to investment in assets such as homes and personal businesses. A capital consumption allowance is the amount deducted to account for the depreciation of capital assets over time. Transfer payments are payments made by the government to individuals or businesses without any exchange of goods or services.

For Computing GDP, the Official Measure of the Value of All