Whirlpool Corporation buys steel in sheets to manufacture refrigerators.Whirlpool also buys a new factory and a metal press to mold the steel.Which purchases are included in GDP?
A)The steel
B)The steel, the factory, and the metal press
C)The factory and the metal press
D)The steel and the metal press

Question

Quizplus · Accepted Answer

The factory and the metal press are included in GDP as they are considered capital investments, while the steel is an intermediate good used in production and not counted separately in GDP.

Whirlpool Corporation Buys Steel in Sheets to Manufacture Refrigerators