In the first half of 2011,automobile sales in the United States were lower than they were in the first half of 2010.The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.
A)nondurable goods;durable goods
B)consumption;investment
C)investment;consumption
D)durable goods;nondurable goods

Question

Quizplus · Accepted Answer

Automobiles are counted as consumption when purchased by households and as investment when purchased by businesses. Therefore, the decrease in auto sales affects both consumption and investment components of GDP.

In the First Half of 2011,automobile Sales in the United