New residential housing is counted in GDP as a(n)
A)durable consumption good.
B)household durable good.
C)investment good.
D)inventory expansion.
E)long-term durable good.

Question

Quizplus · Accepted Answer

New residential housing is considered an investment good as it adds to the country's capital stock and contributes to future economic growth. This is because the construction of new houses requires the purchase of materials and labor and contributes to job creation, which are all factors that drive economic activity. As such, new residential housing is counted in GDP as part of gross private domestic investment.

New Residential Housing Is Counted in GDP as A(n)