Recently, the government made adjustments to how GDP is calculated that included placing software purchases into the category of
A)net exports of goods and services because most software is written abroad.
B)net operating surplus.
C)investment and now directly counts software purchases as part of GDP.
D)inventory and now software purchases are not directly counted as part of GDP.
E)intermediate goods because software is not a final good.

Question

Quizplus · Accepted Answer

Software purchases are considered an investment because they are long-term assets that contribute to productivity, and thus are directly counted as part of GDP.

Recently, the Government Made Adjustments to How GDP Is Calculated