In the first half of 2017,automobile sales in the United States were lower than they were in the first half of 2016.The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.

Question

Quizplus · Accepted Answer

Auto sales are counted as consumption when purchased by households and investment when purchased by businesses. The decrease in auto sales impacts GDP because it reduces both consumption and investment components of GDP. Therefore, the best choice is B (consumption; investment).

In the First Half of 2017,automobile Sales in the United