Purchases of new residential housing are considered investment,for purposes of computing GDP.

Name: Purchases of new residential housing are considered investment,for purposes of computing GDP.
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Question

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Purchases of new residential housing are considered investment because they represent the creation of new capital assets for the economy, which will generate economic benefits in the future. Therefore, these purchases are included in the calculation of GDP, which measures the overall output of the economy.

Purchases of New Residential Housing Are Considered Investment,for Purposes of Computing