Using the expenditure approach to GDP accounting,which of the following purchases is included in the investment category?
A)additional inventory before the Christmas season
B)corporate stocks
C)corporate bonds
D)government bonds

Question

Quizplus · Accepted Answer

Additional inventory before the Christmas season is considered an investment as it is used to produce goods and services in the future, making it a capital expenditure. Corporate stocks and bonds are considered financial investments and are not included in the investment category for GDP accounting purposes. Government bonds are classified as government purchases, not investor purchases.

Using the Expenditure Approach to GDP Accounting,which of the Following