If a household buys a new car, the purchase is included as consumption in GDP, but if a pizza delivery shop buys a new car to make deliveries, the purchase is an investment.

Name: If a household buys a new car, the purchase is included as consumption in GDP, but if a pizza delivery shop buys a new car to make deliveries, the purchase is an investment.
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When a household buys a car, it is considered consumption. When a business buys a car for operations, it is considered an investment in GDP accounting.

If a Household Buys a New Car, the Purchase Is