A farmer's purchase of a new tractor counts as investment in the national spending approach to measuring GDP.

Question

Quizplus · Accepted Answer

Investment refers to the purchase of new capital goods such as machinery, equipment, and buildings, which are used to produce goods and services. Therefore, a farmer's purchase of a new tractor is considered an investment and is included in the calculation of GDP using the national spending approach.

A Farmer's Purchase of a New Tractor Counts as Investment