Investment goods are counted in GDP because they are
A)intermediate goods.
B)purchased in their final form.
C)usually exported as foreign investment.
D)deductible business expenses.

Question

Quizplus · Accepted Answer

Investment goods are defined as goods that are purchased in their final form by businesses or governments for the purpose of increasing their productive capacity. They are included in GDP because they represent an increase in the economy's capital stock, which can lead to higher levels of output and income over time. Investment goods are not intermediate goods because they are not used in the production of other goods, and they are not deductible business expenses because they are considered assets that provide long-term benefits to the business. They may be exported as foreign investment, but this is not the primary reason why they are counted in GDP.

Investment Goods Are Counted in GDP Because They Are